Thinking About Buying a Home in Birmingham Alabama? Should You Ask Someone to Co-sign on a Mortgage Loan?

Buying a home in Birmingham Alabama, obtaining financing on a Birmingham Alabama home

Have You Wanted Something So Badly You Could Almost Taste It?

I know that I’ve been there. And even though we want some things so bad, more often than not, we know that the timing just isn’t right for us to have that thing that we desire.

If you have ever find yourself in a situation like this, especially if you are considering buying a home in Birmingham Alabama, you may ponder on questions such as:

  • What would I have to sacrifice to get this?
  • Is there something that’s a higher priority right now?
  • Can I really afford this?

Buying a Home in Birmingham Alabama With a Co-borrower

Occasionally I come across a client that is thinking about buying a home in Birmingham Alabama who is also considering asking their parents to be a co-borrower (or even primary borrower) on a mortgage loan.  The first thing I always wonder in situations like that is if the prospective home buyer has considered what a huge sacrifice that they are asking their parents to make.

I wonder if a person buying a home in Birmingham Alabama considers that the request really is asking a lot of someone (too much really).  But the most relevant question that I ask myself about the buyer is if they have considered what they themselves could sacrifice in order to make owning a home a reality?

I mean, when you really think about it, there are only 2 reasons that come immediately to mind why someone would need a co-borrower on a mortgage loan:

  1. Poor or not enough credit
  2. Can’t afford the home (income or debt to income ratio)

I Promise I’ll Pay On Time

In either case I imagine that the person buying a home in Birmingham Alabama has to convince the prospective co-borrowers that they (the buyer) will be responsible and that they (the buyer) will make every payment on time and will not dissapoint. If you ever find yourself in this situation, do you think that you could come up with better ways to prove that you are and/or can be responsible?  Let’s say your credit isn’t stellar.

  •  Don’t you think that perhaps you could develop a plan to clean up your credit in order to purchase a home on your own?
  • Or in the case of income, wouldn’t it be more responsible to obtain a second job, if necessary.
  •  How could your increase your chances of gaining better employment and higher wages so that you would be able to eventually use that income to qualify for a mortgage?

What if the Co-Borrower Loses Credit Worthiness?

Before prospective home buyers consider making use of someone else’s good credit, the home buyer should also consider, what effect would a mortgage have on the co-borrowers future need to borrow money.

  • Would the mortgage affect their debt to income ratios to the point of being denied credit in the future?
  • What if they were to have a short term illness and needed the use of their credit only to find out that creditors considered them to be overextended?
  • What if the buyer looses his/her job, can’t make the payments and ruins the co-borrower’s credit? Intentions are usually good, but life happens and is full of surprises.

Do You Really Want or Need it That Bad?

Asking someone to be a co-borrower on any type of loan is a big deal. Oftentimes that carrot dangling in front of you seems like the only thing that matters. Even if at the end of the day you take a little time to consider the cause and effect of your desires and request, you might find that sometimes we ask too much of others and not demand enough of ourselves.

Am I Asking for Too Much?

If you are considering buying a home in Birmingham Alabama, asking someone to be a co-borrower on a mortgage is a big deal. If the co-borrower is sacrificing more than the buyer, which in all likelihood is the case, then it is by far an unreasonable request. Owning a home is a big personal financial responsibility and the best way to demonstrate your level of responsibility to self and others is to develop sound financial practices and the patience needed to work towards goals.

Think twice before asking somene to be a co-borrower.

Birmingham-Hoover Metro Area Real Estate and Property Management

Whether you’re looking to buy real estate your sell your existing property, call or send me and email today, so we can discuss how I can best serve your Birmingham-Hoover Metro area real estate needs!

Exceptional Service Because You Deserve It!

Charita H. Cadenhead,  Realtor®
(205) 527-1112 – Direct
(800) 496-7431 – Fax

Comments or questions are welcome.

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