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If you have a significant other (you know, referred to in human civilization as a wife, a husband, a common law boyfriend or girlfriend) you may think it's only the loving thing to do to include your mate as a co-signer when you are financing a house. While it always pays to be nice to your significant other, you should also remember the legal definition of a co-signer: "Another person who signs for a loan and assumes equal liability for it." It is safe to say that no matter how wonderful your relationship currently is right now, you should stop and carefully consider all the legal ramifications that including a co-signer on the contract may bring.

The Advantages Of Co-Signing As A Couple

There are some definite advantages in co-signing. One of life's basic concepts rings true here: two heads are better than one, and bringing on a co-signer to the loan application offers you more buying power. If both mates work then you can both contribute towards a larger home or more opulent neighborhood, as combined pay checks can raise your monthly income on a loan application. There is also an issue of commitment involved not only legally, but personally. Co-signing for a house is an excellent investment for a couple to make in their future. They can research properties together, find an appealing house that matches their preferences, and then feel a strong sense of responsibility, not only towards the house which they seek to co-own, but for the relationship itself. Will you and your mate live in the house for the rest of your lives or do you have some real estate hopes in place with a plan to remodel the house and sell it? Two cooing co-signers can also demonstrate their commitment to each other by making such a longterm investment. It certainly speaks to the certainty of the relationship if a thirty year mortgage is in your future!

Personal feelings aside however, there is one major issue to consider when co-signing with a partner and its can either work to your advantage or disadvantage. When you co-sign you bring the other person into the terms with you. Therefore, the advantage is that a move like this can help to establish credit, both for you and for the co-signer, even one who has bad credit. If you keep making your payments on time then both you and your partner will build equity, which can be a positive step towards credit repair. Additionally, if your partner has bad credit then you as the co-signer, holding excellent credit, can co-sign the contract for a more

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