Hello All, I am waiting to close on my home equity loan. The bank has ran my credit and I qualified just barely. My Mother needs me to co-sign for her on an apartment today. Will the bank pull my credit again at closing and screw me on this loan? Thanks
The lender is likely to run your credit just before closing. This should not lower your scores on the mortgage loan, since multiple mortgage inquiries within a limited time count as one, but if you co-sign on the apartment, and the apartment, or their tenant checking company, runs one of your reports, or puts a TL on it (you are co-signer, so you would be liable if a payment was not made) it could lower your scores and kill your mortgage loan. At a minimum, you would want to delay ANY activity on your credit reports until your loan closes. In general, co-signing sets you up for grief. You are on the hook, you end up paying if the debtor or renter defaults, you get your credit trashed with their black marks, and you get put in the middle, with no defense, in any dispute. You will only find out about it after it happens, before you can even prevent your credit from being damaged even if you just paid. Why does your mother need a co-signer to just rent an apartment? You would be better off just giving her the money to place a larger security deposit.
