Car Loan approvals can be complicated in the process if you are not prepared for them. However, there are things you can do that can put you into a better position to deal with this. Be as prepared as you can be and have any other borrowers going on the loan prepared as well. Knowing what is required with the lending system means you will be able to be provide all the upfront paperwork at the start which will mean you will encounter less problems and get a quicker response which will allow accessing your car loans money more quickly and easily.
Your car loan can be approved both before and after you choose your car. The basic guide for a fast loan application process is as follows:
1: Firstly prepare your documentation including proof of ID, evidence of income and confirmation of address.
Proof of ID
Applying for a car loan is a serious financial and legal commitment. Your identity must be confirmed to ensure that legal requirements are met and that the loan is secured by a person who is able to face the repayments. There is one exception to this rule and that is if you are securing an additional loan from a financial institution that you have already secured one from.
For all car loans, you need to provide 100 points of ID to the lender. Legitimate options include a drivers license, medicare card, bank card, utility bills, bank statements or other documents that have your current address and/or signature.
Evidence of income or employment
A loan is given based on the applicant’s income, living expenses and any outstanding debts. You must provide evidence to show the amount of income you make in a period of time. It should also include the type of work for e.g. full-time, part-time or self-employed. Applicable documents include:
-copies of each applicant’s most recent payslips
-a letter from an employer stating income and length of employment
-a tax return no more than 18months old
-self-employed will need profit and loss statements and/or tax assessments
2. Assets that will contribute to your financial circumstance
Because Car loans are awarded based on your financial circumstances it is important that you paint an accurate picture for the creditor. A list of your assets can increase the amount you can be loaned and or support your ability to repay a loan amount. Example assets to declare for car Loans include:
-bank account statements
-property or land registry documents
-Motor vehicles, boats or other personal effects owned
3. Debts to declare for Car Loans
Debts also need to be declared as they will be used to assess your financial viability. Loans or debts that should be disclosed include:
-Credit card debt
4 Vehicle details for the Car Loans
The choice of vehicle depends on several factors that will inform your decision. Such things you need to consider are budget, purpose and age of vehicle. The more decisions you can make before the loan application process the more smoothly it will run.
Once you have chosen a vehicle that meets your needs your lender will require a dealer invoice, copies of the registration and proof of the insurance cover.
Keep the process in mind from the outset. Obtain your documentation at the same time you are looking for a vehicle. The two will go hand in hand in securing a loan smoothly and without major complications or delays.