Q:

What is involved in preparing a guarantor letter?

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Quick Answer

Preparing a guarantor letter involves providing the prospective landlord or lender the details of the guarantor's identity, financial standing and scope of responsibility, according to SFGate. The guarantor also needs to produce tax returns, an income statement, an asset and liabilities statement, and a credit score.

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Full Answer

The letter should start with the date and guarantor's full name and address in the right hand corner, explains SFGate. Beneath this, the full name of the prospective buyer or tenant and the address of the property being bought or rented is listed, followed by a persuasive explanation of why the guarantor is financially able to accept the level of responsibility required. Proof of the guarantor's financial standing must include a statement of income and assets. It's helpful to list the name and contact information of the guarantor's accountant as a reference who can attest to the guarantor's financial standing. Character references are also helpful.

It's important to detail precisely what sums the guarantor is responsible for and at what point these sums are paid, notes SFGate. A statement should be included by the guarantor accepting responsibility and authorizing the landlord or lender to conduct a background check on the guarantor. The guarantor's printed name with signature underneath are included at bottom of the letter. Copies are given to the prospective landlord or lender, the prospective tenant or borrower, the guarantor, and the guarantor's financial adviser or attorney, if applicable.

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