What is a joint credit and who can access it?
A popular saying says that two are better than one, and in the case of mortgage loans it is. If you want to buy a home but your savings and credits are not enough, do not worry, there is an option called joint credit in which two people can participate to obtain financing for a home.
With a joint credit, people have the opportunity to obtain a larger credit than they would have individually so they can acquire a better home.
Who can get a joint credit?
The joint credits are generally requested by couples, however, it is also possible to obtain a loan with very close relatives such as parents and children, although it will depend on the requirements of the institution with which the procedure is made.
For example, both Infonavit and Fovissste do request that people who do the process have to be married, so they ask for the marriage certificate to start the process. But some private institutions such as banks do not need this requirement and also do the paperwork with unmarried couples and between parents and children.
How do joint credits work?
The two people will sign the credit agreement, but it will be one that remains as accredited and will be the one with the highest income and therefore a greater contribution, the other person will remain as co-accredited. However, both have the same responsibilities and benefits and when the credit is liquidated both will own the property with the same rights.
Applying for this type of credit is very similar when applying for an individual loan, however, it is important to check the requirements of each institution to ensure compliance with them.
What about credit in unforeseen situations?
When credits of this style are obtained, there are many concerns about what may happen in the future, for example if either person dies or if the couple decides to separate.
In the case of divorce, the couple must determine who will own the place and therefore that person will become the sole debtor. Even during the loan process you can generate a payment plan that the couple can determine. And in case of death the contracts have life insurance to cover the debt.