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I have a high debt to income ratio, even though everything is always paid on time. I'm thinking of asking a sister of mine, with I'm sure stellar credit, to join me on buying a house, qualifying me for a better loan. If someone co-borrows w/ me- would she see or have access to my credit report? I'd be embarassed being older, on my credit card interest rates, totals, etc. . As I said, I have not paid anything late, and always pay well over the minimums, but I know I won't pay it all off by the time I want to buy....
You really do not need to take on more debt. Trying paying off some of your debts before you buy. On a personal side, using your sister's credit can really cause family disharmony later especially if you are already stretched like this.
If your sister is the co-borrower she is responsible for that loan. So if you got into a car crash and died two weeks after close, she would still get to pay that mortgage payment.
The time is not right for you to buy a house now. Wait.
According to my mortgage broker, it's not likely that she would see your credit report, and at closing co-borrowers typically each sign their own loan application again - since you'd be signing at the same time that's when it's possible your info would be visible, but it typically would not be something that has to happen. However, please keep in mind this is general information and things vary by state, lender, closing officer, etc.
More importantly I have to echo some of the previous posters - do you really want to buy when it's really a stretch, and have someone co-sign when you don't want them to know the details of your debt to income ratio? I know it's very tempting to buy right now with interest rates so low, so I sympathize - but she would be on the hook for 100% of the loan if for some reason you weren't in the picture, and it will be more difficult for her to qualify for a loan of her own in the future as long as the monthly payment shows as one of her liabilities.
Taking the defense of the OP for a moment, she didn't say that she has bad credit scores, just a high DTIR to get a new loan.
To answer your question, no, your sister doesn't have to see your credit report. But since you have that concern, you really don't want to do anything to hurt your sister's credit if you over extend yourself.
Pay off as much as you can of your debts and get qualified on your own merits when you are ready. If you wish to ask your sister to join you at that time, it would be simply to be co-owners.
Yes, my score is not what 's troubling...I agree, though, I should pay off all debt before looking any further at buying. It is tempting now w/ interest rates low. And thinking she'd be responsible for the mortgage should something happen..nope, won't do it.
thanks for the advice....I'll just keep socking away at that debt.
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