OK - I know this issue has been discussed before: should a solo borrower sign it or not........
I know different title companies and different lenders will tell you different things, but my question is different and I didn't see it answered in prior posts.
When a borrower signs a loan document - any loan document - he is generally doing one of three things: (1) making a promise (such as a promise to repay the loan or a promise to pay the taxes and insurance on time); (2) stating that certain information is true (signature affidavit, property owner's affidavit); or (3) acknowledging that he has been given certain information (affiliated business disclosure, TIL).
What exactly is he saying or promising or acknowledging by signing the statement of intent to apply for join credit?
Of course the correct answer is that he is telling the lender that he understands that the terms upon which they will offer credit may be impacted (at least in part) by the credit-worthiness of an individual other than himself (ie a co-borrower).
So my question is - when someone says that a solo borrower should sign the statement of intent to apply for join credit, has anyone ever heard a credible reason for it? IE what does that particular signature mean? |
