Things to Consider Before Becoming a Home Loan Guarantor
What is a Guarantor’s Role in Home Loans?
A guarantor is a person who takes full responsibility for the loan repayment on behalf of the Home Loan borrower.
3 Things to Keep in Mind Before Become a Home Loan Guarantor
#1
Know What Type of Loan Guarantor You are
In Home Loans, there are two types of guarantors - financial and non-financial.
#2
What Are You Responsible For
Non-financial guarantors are character certifiers and are under no obligation to repay the loan; financial Home Loan guarantors are.
#3
Be Aware of It's Impact
Serving as a financial Home Loan Guarantor also affects your credit score, so in case of default, ensure to pay the due amount of the primary borrower.