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Need some loan advice..

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My sister asked me to co-sign a $60K loan... I'm not worried about her defaulting. My wife and I have perfect credit, have 1 mortgage, and little to zero debt. We plan on buying a new larger home in less than a year.. What will this do to us when we apply for a new higher mortgage loan? Thanks in advance...

 

 

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The way home lending is right now, it will most likely be a factor. What ever you are supposedly paying for the 60K loan is taking away from your income, thus taking away from your ability to repay the new mortgage in the lender's eyes. I have a payed out house with a 75K credit line at ridiculously low rate with a credit score of 780 the 75K credit line was still a factor when I wanted to ref the new mortgage would pay the 75K credit line first.

 

I would say, get your house first, then co sign away.

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You co sign, it's your loan.

 

She's late with payments, if effects you.

 

Ask how I know this. :squid:

 

The monthly payment and outstanding principal are most certainly going to be factored into consideration when you apply for your mortgage.

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Free advice and yeah I saw where it's your sister, don't co-sign. Doing that will open up a Pandora's Box of problems. Some may occur, some may not, but you are exposed with No upside. Good luck

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Simple don;t do it.

 

It may affect your Debt-to-income ratio if you apply for another loan. She defaults, you're screwed either way. Finally, if you want to destroy your relationship with a sibling, loan them money. ( and co-signing may as well be the same thing).

 

My $0.02.

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My sister asked me to co-sign a $60K loan... I'm not worried about her defaulting.

 

Just because I care, apparently the financial institution she is asking for the loan IS worried about her ability to pay, otherwise they wouldn't insist on a co-signer. They don't do anything justs for ***** and grins. Again, good luck

 

 

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Thank you all for the sound advice.....

 

Something tells me you aren't listening.:shock:

 

I have 3 kids with college loans, tried to refinance my house which is almost paid, they won't loan me a dime with 300K in outstanding loans. Good credit, no issues, long time with same employer, doesn't matter.

 

And, as much as you will deny her ever defaulting, one never knows what happens, be very careful.

 

One last time.......................................LISTEN

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Ask your sister how long the loan is for and the monthly payment.......IF it's an amount you are comfortable covering if she becomes insolvent, sign away........that's what family does.

 

I have done it for all my 3 brothers on their first car, I figure what the heck, if they got in trouble and couldn't afford the $400 a month, jsut let me know and I'll handle it. three brothers, not one late payment.

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The only way it does change your lending situation is if you can get 12 months of cancelled checks showing that it was paid for by your sister. so if you truly want to make a move in less than a year and feel this debt will affect you- dont do it. Best bet is to talk to your loan officer for future planning.

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Simple don;t do it.

It may affect your Debt-to-income ratio if you apply for another loan. She defaults, you're screwed either way. Finally, if you want to destroy your relationship with a sibling, loan them money. ( and co-signing may as well be the same thing).

My $0.02.

 

What he said x10 DON"T DO IT!!!

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