Question:
“Any downside to cosigning on a loan?”
Answer:
Before you co-sign on a mortgage, you should understand what it means. I suspect some people think it’s more like a reference on steroids than an actual commitment. But it’s a commitment.
If you co-sign, you and the other party are both 100% responsible for payment. If any payments are late, as the co-signer, it will affect YOUR credit too.
Additionally, if you apply for any kind of credit or loan, that mortgage will affect your credit rating — even if the payments are made on time.
It may sound like I’m recommending against co-signing, but I’m not. You just need to know how it may impact you so you can make an informed decision.
