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Have you decided to replace your old car? Or maybe it’s time to get a second car? The loan application process actually isn’t as complicated as some – okay, me – fear it will be. I had the opportunity to learn this for myself just this last week.
Nearly any loan officer at your branch will be able to help you. Their computers are networked, so any one of them can bring up your information and see your account standing. Likewise, all the new information they put in can be accessed at any other desk, so if they have to change employees in the middle of the loan process, like they did us, it’s not hard to bring everyone up to speed.
It’s helpful if you’ve had a good relationship with your bank in the past, with few to none bounced checks, and if you can show a history of being responsible with your spending.
When you go in, take a copy of your last paycheck stub and evidence of any income you’ve received on the side. Be sure to have your license with you – well, if you drove to the bank, you’d naturally have that on you – but if you and your spouse are getting the loan together, both persons should have ID, and not just the driver. If you’ve chosen the vehicle you would like to buy, you should also have with you the VIN number of the car, the dealer’s name and telephone number, how many miles are on the vehicle, and the purchase price. You will also need to bring in proof of insurance on your current car, so the bank can see that you are the kind of person who keeps themselves insured at all times.
Your banker will make copies of your information, and feed it all into the computer. Then the powers that be will analyze your request vs. your standing with the bank, income levels, and so forth, and make a decision as to whether or not to extend you the loan.
Once you have received permission to proceed with the loan, you’ll discuss interest rates. This is determined by your credit rating, what the bank is currently offering, and by the specifics of the car you want to buy. Different cars will come in at different interest rates. This is based on their age, condition, make, and so forth. You will also determine how long your loan should extend. Your interest rate and the length of your loan will determine how high your payment will be. It’s important to pay close attention to this part of the process so you’ll know if you can afford your payment.
Depending on where you go for your loan, this whole process can be done in just a couple of days. We received our loan approval within two hours on a Friday afternoon, and on Monday afternoon, we signed the final papers, got a cashier’s check for the amount, went down to the car lot, and picked up our new van. It was virtually painless. So if you’re thinking about getting a car loan, put your worries aside and go talk to your bank. I bet it’s run by some pretty nice people.
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