If you’re like most people, you don’t have a lot of time to futz around with getting a car loan. Luckily, there are quite a few things you can do to decrease the amount of time you’ll spend getting the loan you need.
Regardless of your credit score or credit history, here are some tips you can use to save time:
1) Collect all the necessary paperwork. Be sure to include a paystub, which will prove your income. A recent electric, phone, or cable bill should be included to show your residence. If you have filed bankruptcy and/or have collections or other credit issues, find all that paperwork as well. The last thing you must be sure to do is to include any paperwork dealing with problems arising from a messy divorce. All of this paperwork should be gathered together and taken with you when you go to see a lender to prevent you from having to make several trips.
2) Most loan applications ask for three or more personal references, friends or relatives that do not live with you. Don’t be one of those people who scrambles around looking for the name, addresses, and phone numbers of their personal references while they are filling out their application. Write down their information beforehand, and you will save a lot of time when you complete your loan application.
3) Most lenders will verify your employment by calling your office manager, boss, or your company’s human resources department. If you tell whomever is in charge of employment verification that an auto lender is going to call them, they will be able to quickly provide accurate information to the bank.
4) If you have a trade-in, you should find out the exact payoff amount rather than estimate it. Many people estimate their payoff, which either costs them more money or wastes more time. When you estimate your payoff, the lender may calculate your interest rate as if it were the actual payoff. If the exact payoff amount is lower than your estimate, your interest rate will be higher than it could have been. If your lender approves you for a loan amount that is based on your estimated payoff, you will have to be re-approved if the actual payoff is significantly higher. Finding out the exact payoff amount before you apply for a new loan could save you time or money.
5) It is important that you complete your credit application as accurately and truthful as possible. If you are required to provide former employers, former residences, etc., accuracy helps your application to be processed faster. The lender will most likely know if you lie on your credit application and then check on every aspect or your credit, which will slow down your application approval significantly. However, lying may also cause your application to be turned-down completely.
Next time you apply for a car, follow these five tips for fast and efficient car loan processing.