@Anonymous wrote:
How much weight will negative information from a co-signed loan carry on my credit report and score?
Will both me and my wife’s credit scores be checked when applying for a home loan?
Thanks again.
For a mortgage, both of you would have to apply jointly. One cannot cosign for the other in a mortgage I don't believe. The lender will look at all 3 FICOs for both of you, take the middle score of each set, and use the lower of the two mid-scores as a basis for the mortgage. It's different for a car or other loans. There, both reports would be pulled if one is to be a cosigner and the lender would focus on the strongest score/report (the cosigner's). The lender would report to both credit reports and has equal weight per FICO scoring.
If you cosign for someone and that someone gets hit with a late, then you do too. If that someone defaults, then you default too and would be on hook for that debt.
