Getting pre-approved for a car online can be exciting and nerve-wracking, especially if you haven’t gone through the process before or are financing the purchase. Even buying used cars can seem overwhelming regarding knowing how much you should pay and where to start your search. Luckily, this step-by-step guide on how to get pre-approved for a car online will make that search easier than ever and help you determine exactly what kind of car you should buy based on your criteria.
Research Available Options
Many options are available when looking for a car, including financing through an auto dealership. Dealerships are convenient because they offer multiple brands and models. However, many people find that the dealerships have high-interest rates and fees that make it difficult to get pre-approved for a car online. Other choices are working with an independent financial institution or purchasing a used car. Another consideration is whether to lease or buy the vehicle. Leasing offers lower monthly payments but higher overall costs when compared to buying a new or used car.
Calculate How Much You Can Afford
Looking at your budget and determining how much you can afford to spend on a car comes second in pre-approval. If you are interested in buying a car but have not been able to find one that you like or fits into your budget, I recommend going to an auto show. You can go alone or with friends and family members who are looking for cars as well. Once there, make sure to talk with dealers about the types of cars they offer so that you can figure out what makes the most sense for you. From there, it will be easy to get pre approved online!
Choose a Lender
Many online lenders offer pre-approval for car loans. You should compare rates and terms from multiple lenders to find the best deal. Once you have found a lender, you must fill out an application. The lender will then pull your credit report and give you a decision. If approved, the lender will send you a loan document to sign.
Shop Around, Compare Prices
The next step you have to follow to get pre-approved for a car online is to shop around and compare prices. This way, you can ensure you’re getting the best deal possible. Plus, by shopping around, you can also get a feel for the options available. Having a view of different options can help make this decision less stressful. If you know what’s out there and what your budget looks like, it will make it easier to choose the right vehicle for you and your family.
Preparing Documents Required
Preparing documents needed for the pre-approval process is crucial to your success. Your bank or credit union will ask you to provide them with a copy of your pay stubs and any other forms of income you may have. They will also need copies of your last three months’ bank statements, showing how much money you have in your account and what kind of transactions you’ve been making. Other copies that the bank will ask you to provide include your driver’s license, Social Security card, birth certificate, and proof of income.
Contact Dealer Directly
Contacting your dealer is the ultimate step to take if you want to get pre-approved for a car online. They will provide all the information you need to make an informed decision about what type of vehicle you want and how much money you can spend. You can also ask them questions about their policies on used cars, trade-ins, and warranties before purchasing a vehicle from them.
Pre-approval is a critical first step in the car-buying process. It gives you an idea of what you can afford and puts you in a better negotiating position with dealers. Plus, it helps streamline the entire car-buying process. Applying for pre-approval online is easy and only takes a few minutes. Follow these simple steps, and you’ll be on your way to getting pre-approved for a car loan in no time.