In many cases individuals are pressured into cosigning home loans for family members, friends or significant others. The results can be less than desirable, to put it as nicely as possible. Before you make this very serious financial decision carefully review the downsides and put the situation into the proper perspective.
Issues with Non-Payment
The first most pressing risk of cosigning a home loan is the chance that the other signer will fall into difficult financial times and stop making regular payments. As the cosigner you have to pick up the slack unless you want your credit to be destroyed as well. If the loan goes 30 days overdue the mortgage lender can begin reporting negative information to your credit report.