Buying your first car can be an exciting time, but can also be a bit unnerving if you aren’t prepared. We are going to help explain some of the questions you need to know in order to find the financing you deserve.
How easy is it to get a loan for your first car?
The application process is pretty simple and it takes about 15 minutes. In order to get a pre-approval you will need to provide the following: Name, Address, Social Security Number, Monthly Income and Employment History. Using the information you provided:
1. Your credit will be pulled
2. Your income and debts will be calculated.
3. Employment History will be taken into consideration
Based on this information, you should be able to find out how much you are approved for.
What are the steps to getting an auto loan?
We have broken the steps down the steps for you:
The preapproval process is the first step to getting your first car loan. You can generally find this out once your application is submitted. You don’t have to have a car picked out at this point, this is just to get an idea of what sort of financing options are available to you. Generally, it’s a good idea to have pre-approval letter with you when you go to the dealership so they know you mean business.
The underwriting process is where the lender will verify the information you provided in the loan application. This could be requesting paystub to verify income, a call to your employer to verify employment, or gathering your bank statements to make sure you have enough for the down payment. Auto loan underwriting can also include a title search of the vehicle you have chosen, verification of the year mileage as well as making sure the title isn’t salvaged.
Is it better to finance a car through the dealership or bank?
According to the Consumer Financial Protection Bureau, “You can save money over the life of the loan by getting quotes from multiple lenders”. So if you are wondering if you should just go to the dealership for a loan, or shop around for the best rate, the odds are in your favor to get a second opinion on what you qualify for. There are a few reasons for the this:
• The dealership might be limited in the types of financing they can provide.
• The dealership might prefer to find you a loan that is in their best interest, not yours.
THE BOTTOM LINE
You deserve the best loan terms that are available to you, and the best way to find that is by doing your due diligence and shopping around. Auto Approved is in the business of finding first time buyers the right loan for their situation.