This Tool Determines Whether to Add a Co-Borrower to Your Mortgage
You can get a mortgage on your own even if you are married, but sometimes it helps to have a partner as a co-borrower when you apply for a loan. MortgageHippo has a handy interactive tool to tell you if it makes sense in your situation.
We’ve told you about MortgageHippo before . They will guide you through the entire home buying process, and applying for a mortgage is an important part of this process. Here’s what they say about co-borrowers:
With regard to mortgages, the co-borrower can only offer two positive points: income and assets.
Many people mistakenly believe that a credit rating is also something that a co-borrower has to offer, but unfortunately this is not the case.
Really?
Yeah. Lenders usually use a loan from a borrower with a lower rating to guarantee the loan; therefore, even if your co-borrower has excellent creditworthiness, but you have poor creditworthiness, this co-borrower will not help at all in terms of credit.
A loan may not help (in fact, it may qualify you for a lower rate), but your spouse’s income and assets may mean you are eligible for a larger loan. It’s not worth buying more homes than you can afford , but that’s a completely different post.
With the MortgageHippo tool, you enter your income and credit score, then enter your partner and the tool tells you what your terms will look like with and without a co-borrower. Check it out in the post below.
When should I list my co-borrower on my mortgage application? | Mortgage Behemoth