Houston credit repair expert, Vanessa Perry explains in the latest episode of Ask Impeccable what you should consider before getting a co-signer when purchasing a home.
Houston Credit Repair: Qualifying for a Home
The home buying process is strenuous and often times seems impulsive. When you find a house you want the Realtor and Builder are both high pressure to put in an offer and purchase as soon as possible. They might even suggest having a co-signer help to qualify if your score is not suffice. Having a co-signer is only a temporary fix. At some point you will need to refinance without a co-signer and put the home in your name.
Refinancing includes having to pay for closing costs again which is an additional cost incurred due to the fact of being unprepared to purchase a home. Let us not forget the additional money spent on the higher rate as well. The costs of needing a co-signer right away are far more than getting yourself ready to sign for your home.
A co-signer holds sole responsibility of the home as well which means if you get a 30 day late on your home or if the home goes into foreclosure your co-signer also will receive the derogatory item on their credit. If your co-signer cannot afford two mortgage payments, they should not consider co-signing, and you should not put them in the position to where they have to. Be prepared to buy a house, and make sure you qualify first before shopping and looking at homes.
If you need to increase your credit score to qualify for a home make sure to do your research and have a plan. Many people think that the home buying process is quick and easy, but it can take up to two years of planning and prepping. Up to a year to repair the credit and a year to save for the down payment. Impeccable Credit Services can make a difference between just qualifying and getting the best rate on a house. Make sure that your timeline is realistic and do not let anyone try to sell you a house if you know your score is not where it needs to be. Do your research and make sure that the company you go with is reliable, has reviews and experience . If you have any questions regarding credit feel free to contact us 713-378-1500.