Cosigning an Auto Loan with an Out-of-State Cosigner: A Step-by-Step Guide

Having a lack of credit or a poor credit history often results in a financial institution requiring the signature of someone else with good credit before approving you for an auto loan. The person who signs your loan is known as a cosigner and guarantees the financial institution that he will pick up your payments if you default. Most cosigners sign the loan while in the presence of a financial institution employee. An out-of-state cosigner must visit a notary public to cosign your loan.

Step 1

Ask the financial institution if they will accept an out-of-state cosigner. Major financial institutions likely will, but small local ones may not.

Step 2

Mail the loan documents to the cosigner. The financial institution may prefer to mail the documents; however, it might be acceptable to have the papers faxed. If you plan on traveling to the cosigner's state, ask if you can take the documents with you.

Step 3

Tell the cosigner to visit a notary public with the loan documents. The cosigner can find a notary public at a notary office. Some banks also offer notary services. Instruct the cosigner to bring photo ID with him. Inform him that notary services charge a fee, typically under $5.

Step 4

Ask the cosigner to mail or fax the documents back to the financial institution after signing them in front of the notary public.