Benefits And Downsides Of Having A Co-Signer For A Quezon City Mortgage

If you are thinking of purchasing your own home which is considered to be a major purchase, then, you do not need to have cash to pay off all of the purchase price at that point. If you do not have enough money, you can apply for a mortgage loan from your trusted bank in Quezon City. This way, they can lend you the money to acquire the property and pay the bank through installment for several years, depending on the loan term that both entities will agree on.

At times, though, a lot of financial institutions, especially banks, typically do not take risks when it comes to lending money to those individuals who want to borrow from them. There are several reasons why this is the case. It could be that the borrower has a bad credit report or have a bad unemployment history. In this case, you might be needing a co-signer for the mortgage. Before you look for someone to be your co-signer, here are the benefits and downsides that you should know about having one.

Firstly, the main benefit that you can take advantage of when having a co-signer for your mortgage loan is that there is a great possibility for a Quezon City bank to approve your loan, most especially if the co-signer has an excellent credit history. This means that there is an assurance on the part of the Quezon City bank that they will get their payments as well as the interests for the loan that they will borrow to you. This is because the credit history of your co-signer will act as your own credit history. Once you get the loan with the help of a co-signer, it will help you improve your credit score if you will make your payments on time.

However, the downside lies on the part of the co-signer. If you are unable to make your payments on a timely basis, it will reflect negatively on your credit history as well as his credit history. Worse, if you do not make your payments, or in case of your untimely death, your co-signer will be the one to carry the burden of paying for the remaining loan amount. This may be strike a blow on the personal relationship between the two of you.