If my relative was originally on my mortgage, how can put my name on it so I can begin building good credit?

Question:

Last spring, I had a house I wanted to buy, but my credit was bad and I knew I’d need a co-signer, so my grandfather volunteered to help me. My mortgage broker said my credit is just a bit too low, even for a co-signer, so he recommended putting the entire mortgage just in my grandfather’s name, and my attorney said it shouldn’t be an issue.

By the way, my mortgage broker gave me some bad advice, I think, and said as long as I’m paying that mortgage, even with my name not on it, it’s going to help my credit. But I don’t think that’s true.

My first question is, did I get bad advice? My second question is, what’s the best way to take my grandfather off the loan since my credit’s improved significantly, and just make myself solely on the loan?

Answer:

If you want to take your grandfather off of the mortgage, you would just need to refinance, which provided your credit has improved AND you’re already able to afford the payments, it should be a straightforward approval process. Also to clarify/correct the info you received from the other broker: paying someone else’s mortgage, even if you’re on the deed, will not affect your credit.

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