Has anyone ever hired a cosigner before? Seller finance?

Question

Do you recommend? My husband and I are trying to adult with no guidance so don't come for me lol. I really want to buy a house because I'm tired of renting, but we are not in the position to buy credit wise. Also just heard about seller financing. If you've done this and care to share your story id love to hear. Either inbox or comment here ♥️ T.I.A!
Edit: Please don't be vague y'all. I really want to know. If you have better advice I'll also take that.

Answer

Bad idea. Fix your credit and then try.

Answer

The last thing you want is someone screwing you over. In this day and age of fraud or suing etc. I would not bother. I would clean up your credit. Pay down debt. Or open secured credit cards with cash deposit as your credit limit. At least 3 good trade lines. 1000 or 1500 limit. They are looking for 680 or better for credit scores but some mortgage brokers can work with 640 and up. Use it for the things you normally buy and have the money for. Groceries. Gas. Coffee and pay it in full before the due date. 3 good months at least and it should help. Paying down credit cards to at least 50% or better. Payment plans. Start paying down your debt or paying off your debt. Save save save. You are going to need a deposit. Closing costs. Money for inspection, appraisal, and verification of employment or anything else that may be necessary. Your mortgage should not be more than 1/3 of your income. They also look at your debt to income ratio. They want to make sure you can afford the house and no end up in default or foreclosure. Take a look at your finances. Where can you cut back and save. Take up side jobs. Or another job. All jobs have to be w-2 verifiable income. Cash doesn’t work unless they go back 2 years of bank statements if you are lucky. Once you start the process do not touch your credit or open new credit aside from making payments. Do not leave or reduce hours at work. The process can be 1-3 months. First work on your credit. And saving next. Down payment varies. At minimal 3.5% down for an fha mortgage government loan. You pay pmi or mortgage insurance. It’s an insurance the bank has to protect them for the first 20% of the mortgage in case property values drop. It used to be tax deductible until this year. You will also need homeowners insurance and if it’s not a single family home you may have association fees as well in a complex. You can pay points 5000 per point I believe to lower the interest rate they are going to keep going up. Prior to change of government it was 2.75%. Right now 6.75% they have not been this high in over 20 years. You can put 20% down if you like. Closing costs can be 6-24k depending on the price of the property. All money has to be in the bank at least 3 months ala seasoned money and have a paper trail. I recommend a mortgage broker over a particular bank because you have more options. You can or don’t have to use a realtor. I recommend also using a lawyer for the process and closing. I always use realtors they do the contract. And know the process well. Payment for lawyer and realtor etc is part of closing costs. Appraisal and inspection may run you 300-500 each. There’s several little things like verification of employment if they use a company like the work number to verify employment that change for that a little bit I think it’s less than 50 maybe like 30-40. Sometimes you can get a sellers concession where they pay half the closing costs or lower the price once your lawyer negotiates things that need to be repaired instead of fixing it they give a credit after the inspection. You may have to pay the first year of the homeowners insurance and after that it will get limped into your mortgage payment along with the principal, interest, property taxes and pmi. Here is a tip if you pay a 13th principal only payment once a year over the life of the loan you will knock off 7 years on the mortgage. You can always refinance if rates go down etc. or 15 year instead of 30 etc. good luck. If you have any question let me know.

Answer

It’s a bad idea cause they can want to refinance and take out way more than the agreed amount to remove their name

Answer

I don't think you're in a good financial position to buy a house

Has anyone ever hired a cosigner before? Seller finance?

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