So, you found your dream apartment but you’re unable to obtain official approval for the lease. You are standing at the gate to Willy Wonka’s chocolate factory, but all you need is the famous golden ticket. Guess what? Your dream home may be within reach with the help of a cosigner. Surprisingly, it’s more common than you may think since a lot of younger people just beginning their journey to independence lean on their parents or close family members to be a cosigner for their first place. Here you will learn what a cosigner is, what benefits come with using one, and what you can do to prepare when you utilize a cosigner during the application process.
What is a Cosigner
Getting approved for your dream apartment is more complex than simply signing on the dotted line of a lease agreement. Before you begin packing, sometimes having no credit or poor credit history, lower income that doesn’t calculate 30% for a rental payment, or no previous rental history can prevent you from moving in at all. That is unless you bring in a co-signer.
A co-signer is a third-party individual, normally a family member or friend, who cosigns on the lease with you. Even though their name is on the lease, they won’t necessarily become your roommate. Having a cosigner, and not going solo on the lease, provides added insurance and comfort for your potential landlord and yourself. Having a co-signer is different from having a guarantor. A cosigner is responsible for every payment that a borrower misses, whereas a guarantor only assumes responsibility if the borrower falls into total default.
Why You Should Consider a Cosigner for Your Next Lease
Here are some reasons why it would be useful to have a cosigner when ascertaining an apartment lease:
- If you struggle with having a lower rent-to-income ratio below 30%, finding a proper apartment that meets your needs while adhering to the 30% minimum payment requirement will be challenging.
- If you have a no credit or a lower credit score, bringing in a co-signer with a high credit score will come with added security and boost your chances.
- Do you have a previous eviction history? A cosigner with a clean record may significantly help your application approval (but keep in mind your cosigner’s positive lease reputation may be dependent on how you proceed with adhering to the rental agreement).
It’s important to know that adding a cosigner to your application will not hurt your credit report. In fact, paying your rent on time every month will not only build your rental credibility and grow your credit reputation over time for future apartments but will also allow you to maintain a positive relationship with your co-signer for future opportunities.
Who Should Qualify as My Cosigner?
Who should you consider as a cosigner? Here are some things to consider before asking the big question:
- Ask your potential co-signer if they have the income to support your expenses in case you are unable to pay.
- Is your potential cosigner trustworthy? Are you close enough with them to ask for this big financial obligation?
- Are they aware and committed to the paperwork they will be required to fill out and sign, as well as provide proof of income, fill out a rental application, complete a background check, and complete a credit check?
- Do they understand all the duties and responsibilities that come with being a cosigner? Are they comfortable moving forward and giving you full consent?
Unable to Find a Reliable Cosigner?
Are you having trouble finding a reliable cosigner for your dream apartment? Here are some things you can do to locate a suitable cosigner.
- Reach out to the property manager at your dream apartment and simply explain the situation regarding your rental history, income, or credit score and provide a solution on how you’re going to fix it. Providing proof of recent payment streaks may help you apply and gain approval for the apartment on your own.
- Offer the apartment to pay more rent upfront or put down a larger security deposit as an extra layer of insurance.
- If you can’t get approval for your dream unit, swap it out for a more affordable option that still offers everything you need.
- Seek out co-signer services as a last resort because they may come with a hefty fee on top of your rental payments, sometimes as much as 110% of your rent payment.
Please note that not all rental properties or management companies, such as TLC, have the ability to accept these alternative terms to a lease due to varying reasons such as local county ordinances or state laws.
Allow Our Teams to Find the Perfect Chicago-Based Apartment for You
Since 1996, TLC has been dedicated to helping Chicago residents live in their dream apartments through the help of cosigners. With 36 properties to choose from in both Chicago’s urban and suburban neighborhoods, there is something for everyone. Feel right at home and know what apartment living can be right in The Windy City.
Visit our website to view our available communities and current rates, or feel free to contact us at info@chicagorentals.com for more information regarding the application process and any cosigners we work with.
