Auto Loan Checklist
Before applying for a car loan, you need quite a few things to qualify. Whether it's auto financing, or refinance, you'll absolutely need these items and documentation. A few processes you need to undergo such as.
Preparing your credit
your credit amount would determine if you're are worthy of the loan and this is something only your lender can decide because differentlenders have different criteria in choosing a candidate.
· Get a report
· Check for any errors on your report
· Fix any error you find on your report
· Use less than 30% of your card limit by paying down the credit card balance.
Pre-qualification and Pre-Approval.
You need to get Pre-Approved in order to get a car loan.This gives you a chance to bargain with a lender instead of taking their word as final. You would have more chances of getting a better offer with hour pre-approved rate, although it isn't always so, it is must of the time. It is more advisable to get pre-qualified Before getting pre-approved as getting your credit pulled often can affect your credit ratings negatively. It's highly recommended you work on your credit, do your research and try to avoid high interest lenders like those of buy here pay here and rent to own dealerships.
Here are the steps to take.
· You should have car insurance
· You should have a verified income and employment to make your lender know you can pay up on time. Your tax returns would also help a long way.
· You should have your choice of vehicle information. The kind you want your lender to provide to you.
· You should have done a little research on the average loan rate to know if you're getting a good deal
· Go to a credit union and ask for your rates, you can do this by asking for pre-qualification.
· Compare these rates with at least 3-4 lenders and once you find the one with a better rate, then you can apply.
Guarantee Auto Protection Insurance
When you are done, you can go to your insurance company to inquire if getting a GAP coverage will cost a lot and just how much It would be. Do this before buying any coverage from your dealer. This type of insurance usually covers the car worth and money owed after totally the car sum.
Rebate value to lower interest rates
If you are offered between a lower interest rate or a rebate value, it is advisable to compare both works a consumer reports calculator.also, know the value of the car you are trading in. This helps you get full value from your dealer. You can know this by referring to a Kelly blue book. You should also know the price of the car, the trade in as well as add oms separately. Some times, these are all added by the dealer, so it is OK to request for their separate prices to have a clear view of what you are getting into.
Read more about car loans from https://www.thebalance.com/car-loans-4073341.