There are several reasons that someone may need a co-signer. Even if you’re looking at mortgage loans for doctors, you may need a co-signer to take care of things for you. Sometimes you can’t even get a loan if your credit is bad, but sometimes you can if you have a co-signer. If you start your own business, or take out a car loan, or a mortgage, you’re often required to have a co-signer. Those things cost a lot of money and if you fail to pay it, that’s a lot of money the bank would lose.
Let’s take a look at some of the things that are involved in being a co-signer or any sort.
Can you get out of being a co-signer? Yes, but it involves a lot of technicalities and paperwork. A home mortgage you can eventually refinance and drop your co-signer. When you consolidate your loans, you can drop your co-signer as well. It takes a lot, but it can happen. But, if you’re already thinking about getting out of co-signing, you may want to reconsider if you should do it in the first place.
What kinds of loans can you co-sign for? Student loans, car loans, small business loans, mortgages, and pretty much any kind of loan you can think of could possibly think of can have a co-signer. It helps to reduce the risk for the bank, so it’s not like they’re going to tell you that you can’t reduce their risk!
What is a co-signer responsible for? Everything. Every single penny on that account is also your responsibility, especially if the person you’re co-signing for kind of abandons the loan. Seriously, co-signing a loan is a test of friendship if it’s a friend, trust if it’s a family member or spouse.