10 Tips on Financing a car and get a car loan - FederalAutoLoan.com
It does not matter if you have excellent credit, some lenders require you to provide certain documents and proof of income and residency before granting a loan.
They are called provisions, and the higher your credit score, the more measures will be needed.
Let a look at what you are supposed to provide in the loan approval process.
1 Proof of Income Most lenders you need to submit a current pay stub - no more than 30 days and showing total earnings year to date In most cases, they want you to be a W2 full-time employee with a minimum requirement of net monthly income of 1,250.
self-employed borrowers will have to provide at least 90 days term bank deposit records and up to five years s tax returns.
2 Proof of residency Many lenders require proof of residency such as a utility bill in the name of the borrower sent to their current address There can not be more than 30 days.
3 Personal References Lenders like to have a list of references they can contact in case you do not pay your bills and they are not able to get in touch with you higher your credit score, the references you will have to produce.
Lenders want up to 10 references - including the full name, address and phone number if your credit is bad, you can be assured that they will call your references, so be sure to provide them with real people who will answer their phone.
4 This bill phone only necessary if you are a subprime borrower The main objective is to skip tracing if you stop paying your bills.
5 Many lenders require car insurance you have full insurance coverage on the vehicle with a deductible of 500 or less If your credit is good, it won t matter.
6 Driver License This should be obvious that you will need a valid driver's license in the state where you reside.
TrueCar No-Haggle Edmunds Price Promise and 1-800 Car Show are the best way to see the lowest car prices in your area these sites show you without bargaining the price of the nearest dealer to you - and the prices are generally very good this should be the first step you take when negotiating your car price Follow this with my checklist to make sure you wring every bit of savings - Gregg Fidan.
Each week I will keep you updated on the latest offers and new cars that could affect your purchase This includes.
Gregg Fidan is the founder of RealCarTips After being ripped off in their first car purchase, he devoted several years to determine the best ways to avoid scams and negotiate the best car deals, he has written hundreds articles on the subject of buying cars and taught thousands of car buyers how to get the best deals.
requirements to get a car loan approved, loan, reduce your credit, lower your credit score.