The scenario often goes like this: an adult child with poor or no credit wants a parent to co-sign a home loan.
If you’ve been asked to co-sign a mortgage for your child, a family member or a friend, be sure to get all the facts. why does this person need a co-signer? Is a low credit score the result of overspending, credit card debt, college loans, expensive car payments, divorce attorney fees, child support, or medical expenses? Does he or she have a steady, well paying job?
If you decide to co-sign a loan, be sure you’ll have an ownership interest in the property. After all, you are assuming responsibility for the mortgage payments whether or not the other person is able to pay. Protect your own good credit by consulting a real estate attorney about a co-ownership agreement.
-CREDIT: Personal Marketing Company