Will you be financing your next vehicle purchase? Ensure a smooth approval process by collecting the following items on this checklist and bringing them with you to your lender. Or if you're in the Memphis area and want to save time, getting in and out of the dealership in about an hour, fill out our form to get pre-qualified for financing!
first, you will need:
- Proof of identification. You will need to prove your identity and residence with either a U.S. issued passport or a driver’s license.
- Proof of income. Lenders are of course looking to provide financing to people who can repay the loan, so being prepared with your latest two to three check stubs is a must. If you don’t have pay stubs, a bank statement will work in some cases, but you will want to check with your lender and you may have to go back farther than if you brought in a pay stub. It’s also a good idea to notify your employer that you are applying for a loan, because in some cases the lender will call to verify current employment and income.
- Credit and banking history. Lenders are looking not only for people who have the ability to pay back the loan, but also have a history of doing so. This is why knowing your credit score is so important when searching for a loan. The higher your credit score, the more room you have to negotiate variables such as interest rates and down payments. When you’re financing through a dealership, they may have separate requirements, as they work with multiple lenders to support their loan to value requirements. They will also check your FICO score and your FICO auto score. When a lender manually pulls any of these scores, they will see any credit account you’ve ever opened, the limit, current balance and payment history. To pull your credit score they will need a full name, social security number, address and date of birth.
- Proof of residence. You can provide proof of residence with a recent utility bill, bank statement, credit card bill, property tax statement, auto insurance policy, or homeowner’s insurance policy.
- Vehicle information. You will need the vehicle information for the car you wish to purchase. This will include the make/model, purchase price and the VIN number. You will also need the current vehicle registration for a vehicle you wish to trade in, if applicable.
- Proof of insurance. The insurance you have your current vehicle may cover gap insurance for a new car until you can get a new policy. If that is not applicable, you will want to purchase a policy for your new vehicle before you drive it off the lot. If you are purchasing a new car, your lender may also be able to provide a gap insurance policy for an additional cost that will cover the remainder of your loan, if your insurance provider doesn’t cover the entire purchase price of your car in case of an accident.
It can be daunting to know which lender to sign a loan with. Just remember to do your research and come in prepared. The more prepared you are the quicker the process and the better the chance you will get the best deal possible.