How do I Add a Co-applicant in the Credit Application?
Adding a Co-Borrower in the Credit Application
Adding a co-borrower is only beneficial for reducing the Debt-to-Income ratio (DTI) of the application. Both applicants need to meet the minimum FICO score for that product.
To add a co-borrower, ask the applicant to select "Yes" in the credit application where it says "Is there anyone else you want to add to the application (co-applicant)?"
What are the rules for Co-borrowers?
*Adding a co-borrower is only beneficial for reducing the Debt-to-Income ratio (DTI) of the application. Both applicants need to meet the minimum FICO score for that product.
Here are some additional requirements:
- At least one applicant must be on title for the property.
- Both applicants need to meet the minimum FICO requirement.
- If one titleholder credit fails, try using the "pre-qualification tool" to see if any other titleholders may qualify.
What if an applicant fails credit and wants to add a co-applicant?
If a customer fails credit but you believe the fail is due to the applicant's low DTI, then we recommend you to:
- Run a pre-qualification credit check (soft check) on each of the co-borrowers to see if they would pass credit requirements.
- Create a new customer profile (once a customer credit fails we cannot run more checks on that profile).
- Add a Co-borrower.
Running applications multiple times in 24 hours
Customer's can run credit multiple times in a day and not further effect their credit. This initial check is a hard inquiry, but the customer is able to run it multiple times within a 24 hour span without any additional effect to the credit score.