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If you cosign on a home loan with another person now you may have trouble getting another home loan for yourself later. For instance, say you cosign a mortgage loan for your child then need to buy a condo for yourself in a few years. Some lenders might not approve you for a new home loan when one is currently open. It depends mostly on your debt-to-income ratio (should ideally be 28% or less, meaning your home expenses should not exceed 28 percent of your gross monthly income). Even if you don’t have to make payments on the loan you consigned, the lender might still consider it in your debt-to-income ratio.
