Buzz
Securing a mortgage on your own is possible, even if you're married, but sometimes including your partner as a co-borrower can work to your advantage. MortgageHippo offers an interactive tool to guide you in making the best decision for your situation.
We've previously shared insights about MortgageHippo. They guide you through the entire homebuying journey, with mortgage applications being a significant part. Here's their take on co-borrowers:
When it comes to mortgages, a co-borrower can only offer two key advantages: additional income and assets.
A common misconception is that a co-borrower can contribute a higher credit score, but unfortunately, that's not the case.
Seriously?
That's right. Lenders usually base their decision on the lower credit score between the two borrowers. So, even if your co-borrower has excellent credit, your poor credit could still negatively impact the loan.
While credit might not be a factor (and might even result in a higher interest rate), your partner’s income and assets could help you qualify for a larger loan. Remember, you shouldn't buy more house than you can afford, but that’s another discussion entirely.
MortgageHippo’s tool lets you input your income and credit score, then your partner’s details, and it shows you what your loan terms could look like with or without a co-borrower. Check it out in the post below.
