How it affect credit score,borrowing amount for future mortgages if i'l be a cosigner for my brother mortgage?

my brother ask my husband to be his cosigner for a mortgage, I don't work (sitting with 1 old baby), we'r planning to buy a house in about a 1 year. how this cosigne thing will affect our credit score and getting a mortgage of our own?How it affect credit score,borrowing amount for future mortgages if i'l be a cosigner for my brother mortgage?
It will effect your score if your brother is ever late with a payment.





It will effect the amount you can borrow regardless, as it will drive your income/debt ratio way up.





Unless you make a ton of money I would not do this, it could very well prevent you from owning your own home.How it affect credit score,borrowing amount for future mortgages if i'l be a cosigner for my brother mortgage?
This is not a good situation.





If your husband actually co-signed on the loan, then he is technically responsible for the full monthly payment on that loan should your brother default. That mortgage will be counted in your over all debt and will reduce the amount of a mortgage you qualify for. It doesn't matter that your brother is paying it every month. In the eyes of the lender, both of them are legally responsible for the full payment every month.








Additionally, if your brother is the one making the payments and he doesn't pay on time, that will show up on your husband's credit as well and it will have a very negative impact on your credit score AND on your ability to qualify for a mortgage.





The best thing you can do is to have your brother refinance and take your husband off the loan. And NEVER do something like that again.
Co-signing for a loan is about the worst idea ever.Especially with a family member.It very rarely works out well and your credit rating will definitely be affected.I'd advise you to read a book that I read recently written by Dave Ramsey called The Total Money Makeover.The fact that he needs someone to co-sign should be a flashing neon sign right there that there must be something wrong with his own credit rating if he needs someone to sign for him.We always want to help family but when it comes to something like this I think you should think about it very carefully and really nderstand the affect it will have on you.Read the book....you'll know what I mean.Good luck!





Rita


healthyincomefreedom.com
This is a bad idea under the best of circumtances. I can see no good reason for your husband to do this.





If for any reason your brother can not make his monthly mortgage payment the lender will be looking for your husband to pay it.





If for some reason your brother does not make the monthly payment it will be reflected on your husband's credit report.





Your brother might have all good intentions to make the monthly mortgage payments, but if he get ill it would not make a difference to the lender. They would still add a one month late to your husbands credit report.





With you and your husband wanting to purchase a house in the very near future and one year is in the near future this will cause problems for you.





I am not concerned with debt ratios because if you can prove with cancelled checks from your brother's checkcing accocunt that he is making the monthly mortgage for a full year or more that will not be a problem.





My over all concern is that for some reason your brother might not make a payment one month or on time. Say your brother decide that something else is more important for him to purchase. He saves the money to purchase this item by not making his monthly mortgatge he will be able to buy this item.





This would be a bad decision on your brothers part, but the late payment would be reflected on your husband's credit report.





I hope this has been of some use to you, good luck.





';FIGHT ON';
please do not do this because not only can it affect your credit if the payment is ever late but you will not get qualified for a much n your own home and plus....a home is the BIGGEST debt you will ever take on. 30 - 40 years is no joke. If someone cannot qualify by themselves then they are not ready to buy. Advise them you do not feel comfortable and have them continue renting and fixing their own credit. They can also save for a down payment that way as well.
Not only will effect your credit score. But it will also impact the amount you can barrow on the home you want. As it falls under obligations.
Do NOT do this!!!