Before you go vehicle shopping, it is advisable to get a preapproved for a new car loan. You are in a better bargaining position with the car dealer when you get a preapproved. You will also be able to streamline the entire buying process.
When you get preapproved you don’t have to worry about financing options and you can instead focus your attention on the vehicles benefits, features and price. This can enable you to make a good and informed choice. One of the important things that you need to know is that you are under no obligation to use the lender that preapproves your new car loan.
- Shopping for Preapproved
Before you start shopping for a preapproved loan, it is best to know your credit score. You are entitled to at least one free copy of the credit report and applying for it can enable you to know your credit score and check for any errors.
Set a realistic budget and start with your own bank. Shop around by getting information from multiple lenders. This can enable you to get the best possible rate.
- Applying for a Loan
Gather all information that you need to provide in the application form. You will be required to provide basic information such as name, address, date of birth, driver’s license number and social security number. You may also be required to provide information about your car insurance company. You can choose to complete the application form online.
Compare the offers so that you can choose one that best fits your specific requirement.
- Buying the Car
Check the loan agreement as there may be specific requirements that you need to fulfil before buying the car. As you are at an advantage you can negotiate the price with the dealer. This can enable you to get the best deal.