While you don't necessarily have the same rights to the vehicle as the primary borrower, you – as the co-signer – are equally responsible for ensuring the loan is paid back. If the primary borrower doesn't make their monthly loan payment, you will be asked to make the payment.
Does it matter who's the borrower and who's the co-borrower? Since the borrower and co-borrower are equally responsible for the mortgage payments and both may have a claim to the property, the simple answer is that it likely doesn't matter.
Equal rights: The co-borrower has equal rights to the car as the primary borrower. This means the co-owner must be involved in the sale or transfer of the car. Insurance: Even if the co-owner doesn't use the car, they will likely need to be on the insurance policy. This can mean higher costs for both involved.
The understanding is that the primary borrower is the person legally responsible for repaying what is owed. Co-borrowers, on the other hand, are people who want to take on a shared debt with another person.
After all, couples who apply for a home loan together often have incomes that differ. When evaluating borrowers for a joint mortgage, the lender cares less about who is listed first, and more about the sum of the applicants' earnings and debts.
When there are two names on a title deed, it means that there are joint owners of the property and each person owns an equal share of the property. The mortgage does not need to include both names to be valid. Even if the mortgage only lists one spouse, it does not affect the share of the ownership of the property.
Yes. A lender vets a co-applicant by the same standards as the original applicant. They need a good credit score, stable job history, etc. to be approved.
A cosigner is not the same as a co-borrower.
A co-borrower applies for a loan with the primary applicant and both parties are responsible for paying back the loan. The cosigner does not intend to make any payments — that is the responsibility of the primary borrower.
Refinancing is generally the best way to take a person's name off a mortgage. Depending on your lender, it may be the only way. If you have sufficient home equity, credit, and income — and your ex-partner agrees to give you the house — you should be able to refinance your current mortgage in your name only.
Being a co-signer itself does not affect your credit score. Your score may, however, be negatively affected if the main account holder misses payments.
The primary borrower has the ownership rights to the vehicle. The cosigner does not. This is the case whether the borrower bought the car from a dealership or from a private seller using a private party auto loan.
THE BANK AND THE COURTS DO NOT CARE. All they care about is that YOU signed the loan, so as far as they are concerned YOU owe the money and you owe ALL of the money to the bank, and the only way to change that is to pay the money back. The buyer can get another cosigner or you can sell the car to pay off the loan.
Pros of having your spouse cosign on a loan
If your spouse has a better credit score than you, you may qualify for a better interest rate and be able to access more generous payment terms than you would if you were able to secure the loan by yourself.
Can a cosigner take you to court? If you're the primary borrower on a debt, your cosigner can take you to court for: Recovery of money paid: they can sue you to recover the money they've paid towards the loan. Fraud: they can sue you if you signed their name to the loan without their permission.
Are all borrowers required to be on title to the property, if there are multiple borrowers on the loan transaction? When there are multiple borrowers on a transaction, only one borrower needs to occupy and take title to the property, except as otherwise required for mortgages that have guarantors or co-signers.
Deciding to apply for a joint mortgage depends on which option will get you the best mortgage. On one hand, including the partner with bad credit could disqualify you for a loan. Even if you do qualify for a mortgage when one partner has bad credit, you might not qualify for a good interest rate.
Removing a name from your mortgage: Can it be done without refinancing? Yes, it is possible to take sole responsibility for a home that you're currently sharing without refinancing, even if your ex-spouse or another co-borrower or cosigner is currently on the mortgage.
Most conventional mortgages are not assumable, but many government-backed loans (FHA, VA, USDA) are. The lender must approve you assuming the mortgage, and at the closing, you must compensate the old borrower for the amount they've paid off.
Yes, you can put your spouse on the title without putting them on the mortgage. This would mean that they share ownership of the home but aren't legally responsible for making mortgage payments.
If a borrower is on the loan, he or she must also be on title. If a borrower is on the loan, he or she must also be on title. This does not mean the borrower cannot quitclaim off title after close of escrow, however. Borrowers just have to be on title at close of escrow.
Yes, it's possible for someone to fraudulently take out a loan in your name without your knowledge. This is known as identity theft.
Applying with a co-applicant who has a higher credit score than you can help you get approved for a lower interest rate and other more favorable loan terms. And because the incomes of two applicants are being taken under consideration, this could help you get approved for a larger loan.
A co-borrower is someone who joins you, the primary borrower, in the mortgage application process. Their credentials are used, in conjunction with yours, to qualify for a home loan.
Co-Borrower Meaning
Generally, co-borrowers share the title of the home. But this isn't always the case since the loan and the title are separate. Be aware that if you're a co-borrower and your name isn't on the title, you'll still be responsible for paying off the mortgage – but won't have the right to use the house.