Normally, getting an auto loan is never an obvious thing. There are a number of documents you need to possess. In fact, companies that offer auto loan services are so keen to ensure that all documents are authentic. In fact, there are most companies will always call the issuer of the documents just to confirm their authenticity. You can see this and more articles at Auto Lending Facts |
For the purpose of this article, we shall focus on 5 major documents that you need to get an auto loan. However, it is important to note that you may require more documents and this will depend on the minimum requirements of that company. In most cases, these companies try as much as possible to eliminate a lot of bureaucracy in their systems to ensure their customers get the services they require within the shortest time possible. This is actually the main reason why a number of companies have adopted the online application systems. Depending on the company of choice, they may require the following documents:
Proof of identity
The company you want to deal with must know who you are. That is, you need to produce those documents that indicate your nationality or your state. This may not be a requirement for a bank or a credit union you had done business with. In fact, some institutions may require more documents for personal identification. This implies that you may require the following major documents:
1. You national ID/passport with your signature 2. The current utility bills 3. The current bank statements 4. Other forms of IDs that you may require include titles for homes or vehicles, government issued document or stock certificates.
Proof of residence This is a crucial verification procedure alongside the one listed above. Potential lenders want to be certain about your exact location. That is, where the lender can find you in case you fail to pay the loan. In most cases, the auto loan companies may require current utility bills for this.
Proof of income
You need to convince the company that you actually have a steady source of income. This will assure the auto company that you can actually service the loan. A number of companies will do all that it takes to ensure that the document is authentic. These may include bank statements or pay stubs. Some lenders will go as far as calling the employer in case you’re employed or verify your assets. Again, in case you happen to list any of your assets, they can be used as a collateral to secure the loan. Nearly all lenders will always request for a proof of income. In case you don’t have one, then there are chances that you may not get the auto loan.
Proof of insurance This is also a requirement in case you need to get a car loan. You’ll need an insurance for a new insurance cover for the new vehicle you intend to purchase. It is better to have the insurance cover ready ahead of time. Again, you need to get the best offer in the market that is also cost effective.
The trade-in documentation
This is vital for people who’re trading in vehicles. You need to acquire a registration and title papers. You should have other documents for proof of ownership. Normally, this will determine how much financing you’ll get. Apart from this, there are other requirements you may need such as the down payments and verification of credit rating. It is advisable to prepare these documents in advance to avoid instances of the company declining your loan request simply because you don’t have these requirements.
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