You may be accustomed to the terms “cosigner” and “guarantor” if you are a McDonough renter. However, what do they mean? Furthermore, what is the difference between the two? In this article, we will discuss the distinctions between cosigners and guarantors, as well as offer suggestions on how to solicit guidance from friends and family.
What is a Cosigner?
A cosigner is someone who signs your lease with you and pledges to pay the rent if you are unable to do so. A cosigner is regarded as another tenant, even if only on paper. The cosigner must also legally occupy the rental property and sign the lease with the tenant. Additionally, this person is prepared to share the financial obligations of a tenant, including any possible fines, unpaid rent, or property damage. A cosigner will typically have better credit than the renter and a higher income because they must demonstrate an income of at least six times the rent in order to qualify. A co-signer can make it much simpler for a young or first-time renter to qualify for a rental home.
What is a Guarantor?
A guarantor, unlike a cosigner, assures you that they will cover your rent only if you cannot. In contrast to a co-signer, a guarantor is not regarded as a tenant and does not have the same rights. A guarantor serves as a financial cushion should the tenant be unable to fulfill their financial obligations. A guarantor, similar to a co-signer, must present an income of at least six times the monthly rent.
Key Differences
The main distinction between a cosigner and a guarantor is that a cosigner is legally responsible for the rental property, whereas a guarantor is only financially responsible. If the tenant does not pay rent or make repairs to the property, the guarantor is financially responsible. However, regardless of whether the tenant pays the rent or not, a cosigner is still responsible.
Why You Might Need a Cosigner or Guarantor
You might need a cosigner or guarantor for a few different reasons. Perhaps you are new to the rental market and lack established credit. Or maybe you’ve undergone financial difficulties, causing your credit score to suffer. Whatever the reason, you might need to ask a friend or member of your family for assistance if you can’t get approved for an apartment on your own.
How to Ask Someone to Help
When requesting a person to be your cosigner or guarantor, it’s crucial to be truthful about your financial situation. Tell them why you need their assistance and what would happen if you were unable to pay your rent. Additionally, you should give them any pertinent documents, like your lease or income documentation. Lastly, ensure that they are aware that they could be held accountable for paying your rent if you cannot. It’s best to select a person you can trust and who is financially secure because of this.
It is a difficult choice to ask somebody to be your cosigner or guarantor. However, if you are honest about your financial situation and explain the risks involved, the appropriate person will be willing to assist you. Speak with one of our McDonough property managers if you have any additional inquiries.
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We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
