Buying a house is a great decision, but many times the cost can seem too high, so sharing the mortgage with your partner, brother, sister, friend, etc. It is a good idea, if this is your case, here we leave you everything you need to know about this option.
How does the co-creditor work?
This option allows you to acquire a mortgage loan together with someone, regardless of whether they have a blood relationship or not, with this, both people acquire the same responsibilities and rights over the property and debt.
If you still haven’t decided on this option, here are some advantages and disadvantages:
- By getting two people together you can get a higher amounttherefore a lower interest rate.
- By pooling the income, they can find a better housing or larger.
- All are shared bills that comes with buying a house.
- Because it is a long-term commitment, it should be carefully reviewed whether both people agree with all the implications.
- Before making the contract, they must review, for example, the earnings of each person in case of selling the property.
- If any of the people fails to comply with the payment, the other will be affected.
If you want to opt for this option, here are some of the requirements that almost all institutions can request, but keep in mind that it varies depending on each one:
- Both people must pass the credit evaluation.
- The sum of the income must cover the monthly payments.
- Submit the documentationn requested by the financial institution.
- Lastly, they must sign the contractbut not before reviewing and confirming the information.
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