What To Prepare Before You Apply Online For Financing?
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Online financing applications aren't nearly as difficult as they sound. Many people are surprised to learn how much quicker it is than the old method--walking into a dealership and waiting for someone else to locate your file or sitting for hours as paperwork is shuffled. You can now start the process at home with just a few clicks. It's easier to get through the process if you are prepared.
A little bit of preparation can make all the difference. We'll show you how to move from the app to the approval step by step, and what you need to prepare before pressing "submit."
Financing Online Has Become The New Normal
Filling out a finance application used to take up half of your day. Sitting down with a dealership representative or loan officer, you would hand over your license and income proof. You might even be asked questions that seemed a bit too personal. Many people found the process stressful and even intimidating.
The shift to online applications has relieved a lot of pressure. Enter your information when you want to, whether it's late at night while drinking coffee or at lunchtime at work. You can pause to double-check the numbers and then pick it back up later, if necessary.
It's not just easier, it is often easier. Redemption Auto is one of many lenders that have made their systems simple and easy to use. They guide you through the process. It's like ordering online or booking a flight: you fill out the blanks and attach any necessary documents, then hit confirm.
Online or offline, lenders still want to be confident that you will repay the loan. What you do beforehand is important.
Understanding Your Own Credit Picture Is The First Step.
Your credit score is the deciding factor in financing. Although it is not the only consideration, it is a very important one. You may be surprised if you haven't looked at the information before.
You don't have to score a perfect 100 in order to be approved. It's not true. Even buyers with credit scores that are less than ideal can still obtain financing. Knowing your credit score gives you control. You can get a feel for the rates that you might receive and avoid any surprises.
You can check your credit score using many free banking and app tools. Do this a few weeks before you apply. You'll be able to correct any mistakes, such as an incorrectly reported old account.
Step Two: Gather Basics
Almost all online applications require the same information. It's not too frightening, but it is helpful to have them available:
A valid driver's licence or ID number
Proofs of Income (recent paystubs, W-2s or bank deposits for self-employed)
Employer Details (Name, address, contact information, and the length of time you worked there)
Residence History (your present address, the length of time you've been there, as well as your previous address, if less than two years).
Monthly mortgage or rent payment
Once you have all the information, you are ready to go. Some people create a "financing file" with scanned copies on their computer so that applying anywhere is easy.
Step Three: Be Honest about Your Budget
It's important to remember that just because you can be approved for a loan of a certain amount, doesn't mean it's advisable.
You may be told by lenders that you are eligible for a monthly payment higher than what you feel comfortable with. This is their math. Your real life - your groceries, your kids' activities, and unexpected bills - doesn't always fit into a lender’s formula.
Do some math before you apply. Calculate what payment you can afford, not only today but also six months in the future. Redemption Auto’s loan calculator is a useful tool. You can play around with the numbers - loan amount, interest rate and length of loan - until you find an affordable payment.
Step Four: Fill Out The Application
Typing in the entire text can be intimidating for some people. Do not overthink the process. Online forms are generally very clear and walk you through your personal information, employment, income and vehicle interest (if you know it).
Here's some advice: Slow down. Typos are the main reason for delays. The system can flag a wrong decimal or incorrect digit of your Social Security Number.
Double-check all sections before you move forward. Only submit your form when you are confident.
Step Five: Be Prepared For A Quick Response
The speed of online applications is one of its biggest benefits. You can get a decision on pre-approval in a matter of minutes. It may take up to a day for extra verification, but this is rare.
You are not locked into anything by a pre-approval. It's like getting a green signal. The lender will likely finance you pending the final check. You also have more negotiating power. Knowing your options before you walk into the dealer's office can help to shift the balance of power in your favor.
Avoid These Common Mistakes
There are still some pitfalls to avoid, even though the process has become easier.
Estimating income Use your actual gross earnings, not an estimate.
Leave fields blank. Pause and look up information if you are unsure.
Not reading your email. Most lenders send digital follow-up requests. Ignoring these requests can delay your approval.
Applying too many places simultaneously. Each hard inquiry will affect your credit score. Redemption Auto, a trusted dealership that simplifies the process, is a good choice.
What People Worry About When They "What If"
Some people are afraid of rejection. Rejection is not the end of the world. It's not always a problem to tweak details, such as adding a cosigner, increasing the down payment or changing the loan amount.
Some people are concerned about the security of online transactions. A fair concern. Verify that the website you are using to apply is secure by looking for the padlock icon in your browser. Redemption Auto and other reputable dealerships protect your data using encryption and security protocols.
You can change your mind. Pre-approval isn't binding. You're not bound if the numbers aren't right.
Redemption Auto Makes Financing Simple
A little personalization is the key. Redemption Auto is different from other dealerships that claim to make the process easy.
Our team is available to answer questions before, during or after you submit your app. We are available to answer any questions you may have, whether it's before, during or after the submission. We'll help you if you are unsure which document is acceptable as proof of your income. We'll compare the financing options for two different vehicles if you're trying decide between them.
The goal is not to get approvals as quickly as possible. You should be confident in your decision because purchasing a vehicle shouldn't feel stressful.
Final Thoughts: From Approval to Approval
Preparation is the key to a successful online application for financing. Take your time to fill out the application, know your credit score, collect your documents, be honest with your budget and gather all your paperwork. If you follow these steps, your app will likely be approved without any problems.
What's the best part? After the financing is sorted out, you can concentrate on the fun part - choosing the right car.
Redemption Auto is here to ensure that the entire process, from application to approval, to driving away, feels seamless. Grab your information, sit down in front of your computer and begin the process when you are ready. You may be surprised by how easy it is.
