You’re not just helping them — you could be losing your home
This one breaks our hearts every time we see it happen.
A buyer is all set — pre-approved, under contract, getting ready to close on their dream home — and then everything falls apart at the last minute.
Why?
Because they co-signed for someone else during the process.
What Buyers Get Wrong About Co-signing
Most people think of co-signing as doing someone a favor.
They assume it’s no big deal because:
- “It’s not my loan.”
- “They’re the one making the payments.”
- “I just signed to help them out.”
But here’s the truth:
There’s no such thing as “just co-signing.”
When you co-sign, you are a co-borrower — legally and financially responsible.
That truck loan you helped your brother get?
That apartment lease you helped your niece qualify for?
It all shows up on your credit report — and lenders will treat it as your debt.
How This Kills Your Home Loan
When your mortgage lender pulls your credit (and yes, they pull it again right before closing), any new loan or debt obligation — including a co-signed one — gets added to your debt load.
That means:
- Your debt-to-income ratio changes
- You may no longer meet the qualification limits
- Your loan can be denied — even days before closing
We’ve seen buyers lose the home they were just days away from owning… all because they tried to help a friend or family member by co-signing for a car, a credit card, or even furniture.
House Karma Rule: No Co-signing Until After You Close
We can’t say this strongly enough:
Do not co-sign for anyone — for anything — before or during your homebuying process.
Not for a car.
Not for a loan.
Not for an apartment.
Not even for your kids, siblings, or best friend.
Even if you have the best intentions in the world, it puts your own deal at risk.
Once you’ve closed on your house — and we mean after the ink is dry — you’re free to make that decision.
But until then, you have to protect your own financial future.
How to Say “No” (Without Feeling Guilty)
We know it’s hard to say no — especially to someone you care about.
Here’s what you can say:
“I’d love to help, but I’m in the middle of buying a house and I can’t co-sign for anything right now. It could mess up my loan approval.”
It’s honest. It’s clear. And it sets a boundary without burning bridges.
Bottom Line
Co-signing might feel like helping someone else — but it could cost you your own home.
No one will tell you this until it’s too late.
But we will.
At House Karma, we’ve seen too many deals fall apart because someone tried to be nice — and didn’t realize the real consequences of co-signing during the loan process.
Protect yourself. Stay focused. And don’t do anything — even for someone else — that could risk your shot at homeownership.
We’ll help you get the home first. You can be generous later.
