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Maintaining a balance between short-term assets and short-term
liabilities is critical. Draw up an enforceable contract between you and the co-signer,
specifying rights and responsibilities, such
as who will be occupying and maintaining the property and who will be
paying the bills. Whether you're the one buying a house or the one co-signing for someone else, once there's a contract on the home,
you and the co-signer will complete an official application form for the mortgage, sign it and give
it to the mortgage broker or loan officer, along
with other documents, like authorization to verify your employment,
income and credit history.