Should You Co-Sign A Loan?

I saw this more often when I first started 17 years ago. I don't see it that much anymore, but I read something that made me think I should 'talk' about it.

Your kid/sibling/friend wants to buy a place, you want to help them, so you consider becoming a co-signer on their home purchase.

Things to consider:

* You are responsible for that loan if the other person fails to pay the mortgage.
* Co-Signing will affect your credit, not just the main borrower. See comment above.
* It can harm your chances of another purchase. That mortgage you co-signed on counts against your debt-to-income ratio.
* You have to submit alllll of your paperwork, just as if you were the primary borrower.
* This one really is the most important......should you really co-sign so a person can stretch for their purchase? That's a personal decision you'll have to make.

Being a co-signer can be a great, or not so great, thing. Just make sure you know what you're possibly getting into with your generosity. Talk to your trusted financial adviser before taking the co-signing plunge.