By: Raymond James
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals
Having the necessary and correct documents on hand can help you get a car loan faster and limit delays. Documents are needed to provide proof of your identity and show that you can meet the criteria of the loan.
Aside from having a good credit history and sufficient income, there is further information that financial lenders like Rapid Loans look for when assessing potential clients. Financial institutions will also require applicants to provide copies of a number of documents to prove your suitability.
1. Proof of Identity
Applicants must provide the necessary documents to confirm their identity. Some of these include a driver’s license, passport, or other government-issued documents.
2. Proof of Income
Before a customer can get a car loan, the lender needs to know that the applicant can pay back the loan. This step is carried out by analyzing various factors such as your income, assets, and monthly expenses.
You will be required to provide proof of your income through pay stubs and bank statements.
3. Banking and Credit History
When applying for a car loan, you’ll need to provide all the necessary details, such as your banking history. Your credit report and other details are also analyzed to see if there are any issues with your account.
4. Proof of Residence
This step is also carried out by mortgage companies and other financial institutions. They require proof of your residence to confirm the details of your application. If you recently moved, you may also need to provide additional documentation.
5. Vehicle Information
If you’re financing through a dealer, the vehicle’s details will be forwarded to the loan provider. If you’re working with a private seller, this process will be handled by the seller. The information they will want will include the price, year, model, make and VIN.
6. Insurance Information
If you are approved for a loan, you will need to organise insurance for the car before you can drive the vehicle away, so think about which car insurance policy will suit your needs.
7. Trade-In Information
If you have a vehicle you will be trading in, find out from the dealer how much the vehicle you want to purchase will cost after the trade in, so you know how much to apply for in your car loan application.