Getting a Mortgage with a Cosigner

Matthew Jackson Mortgage Tips

Having trouble getting a mortgage?
When you are first getting a mortgage, are a student or transitioning to a new job and you just don’t fit the banks guidelines to get a mortgage you may have need of a cosigner.
There can be many reasons as to why you need a cosigner on a mortgage and with the way banks are becoming tougher and tougher it is becoming more common. I will go through who qualifies as a cosigner, what the bank will ask for from them and potential other options.

Who qualifies as a cosigner?
Generally, only direct family members are allowed to cosign on your mortgage. Mother, Father, Grandfather, Grandmother, brother or sister and sometimes they will allow an Uncle or Aunt. There can be exceptions to this rule but those are the main people who are allowed to cosign.
An exception would be someone such as a Step Father, Step Mother or God Parents. In a situation where lets say you were raised by either of these, the bank would most likely allow them at that point. The reason why I say these would be an exception is because the banks are becoming less and less emotional and have very strict guidelines that they don’t like to deter from. With the right story or circumstance, they will make an exception though.

What will they ask for from your cosigner?
When someone comes on as a cosigner, the bank will ask for all debt and all income verification. When I say debt, this does not mean cell phone bill, gas bill, etc. Debt means any credit card, line of credit, loans or mortgage debt, those are in most cases the only debt the banks will want to verify.
For income, the banks will want verification of whether they are self employed, an employee, fully commissioned, etc. So whatever the cosigner has for income, the bank will verify that income with a requested list of documents. You don’t always need all of their income if they have more than one income stream.

I hope this clarifies what is needed and who can be used as a cosigner or co-applicant.
Contact me with any questions,
Matthew Jackson
250-826-3111
www.mortgageokanagan.com