*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Sometimes situations arise where a borrower, by themselves, won't be able to afford or qualify for a loan.
At that moment of realization, distress and anxiousness rush through that borrower's veins, paralyzing them at the thought of coming up short. Frustration courses through their mind that they won't be able to achieve a goal that they've dreamed about since their youth.
It's in these moments when it's important to remember that other options are available to help a borrower get into their dream home.
One of those options is teaming up with a co-signer.
I like to think of co-signers as though they were relief pitchers in a baseball game.
The starting flamethrower cruises their way through the first seven innings and is starting to feel their arm weakening with each pitch. The movement and velocity on the ball are shrinking with each throw, and the opposing batters are beginning to make contact against the fatiguing pitcher. Just when the team needs them most, the relief pitcher takes the mound and relieves the starter of their duties. The reliever takes control and helps the team finish their way to victory.
Just like the relief pitcher, co-signers can come in at an important time and give the borrower the added boost to push the loan across the finish line.
Occupying co-signers can be anyone including family members, friends, colleagues, and strangers. Non-occupying co-signers are usually limited to immediate family members, including grandparents, parents, step-parents, siblings, and step-siblings. In some cases, aunts, uncles, and cousins wouldn't be able to co-sign with the borrower unless they were planning on moving in together.
Adding a co-signer to a mortgage can make a huge difference in qualifying to purchase a home. Co-signers putting their financial backing behind the purchase of a property can help a borrower to get an interest rate, and loan program that they otherwise wouldn't have been able to get by themselves.
Another benefit of having a co-signer is partnering up with a person who now also has a vested interest in the future of the home. Responsible spending and saving, paying the mortgage and utilities on time, and the general upkeep of a home provides lifelong lessons that can benefit both borrowers in the long run.
If you're ever in a situation where you're struggling to qualify, or finding it hard to be financially stable enough to purchase a home, explore the possibility of getting a co-signer. Feel free to contact me and lets discuss the pro's and con's of this option further.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS #1606597
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