If you have ever asked the question “what do I need for a car loan?”, It’s not too difficult to gain an average answer for a car loan, however gaining the best answer possible that’s suitable to you requires a bit of background work and supporting documents to be supplied to the lenders.
With the help of a qualified finance broker, they can guide you through the loan process and advise on what is required from lenders to help you gain the best loan approval based on your profile and car loan needs.
To start the loan process, most people tend to discuss their needs over the telephone with the broker who will ask some qualifying questions on your vehicle use requirements, your budget, your own circumstances and what type of loan you are looking for so they can give you a guide on what the lenders will require to process a loan application.
If you are happy to proceed to a loan submission, the broker will either take your application over the phone, online or email/fax an application pack directly to you to fill in at your convenience. In order for the broker to submit the loan application for processing, they will require your privacy and credit disclosure consent which can be accepted electronically or by email. At this stage, the finance broker may ask for current payslips as this will assist with speeding up the loan application process for you.
Your finance broker will conduct a preliminary assessment on your application so they can recommend a loan product that is suitable to your objectives and requirements. The finance broker must ensure you are not taking a loan that could put you into financial hardship, now or in the future. As most lenders require different supporting documentation, the finance broker may ask you for bank statements, ID documents, etc so they can profile your application through their panel of lenders to find a lender and loan product that suitable to your circumstances.
Once your loan has been approved, your finance broker will provide you will the relevant information relating to your loan including loan repayments, interest rate, terms, fees and charges and if satisfied will organise an invoice from the seller and draw down the loan documents for you to review and sign.
If you’re happy to proceed with the loan, then the broker will either meet with you or if you’re not able to meet with the broker, they will email you the loan documentation and discuss the details over the phone with you.
Once you have signed the paperwork, the finance broker will submit the documents to the lender for settlement along with any supporting documentation the lender has requested for settlement. Once the loan has settled and funds have been transferred to the sellers bank account, you will be able to organise delivery or pickup of your goods.
Obviously this sounds like a lengthy process but can happen usually within 24 hours dependant on the seller and what supporting documentation the lender requires.
Using a professional finance broker will enable you to gain significantly better answers from the lenders as they understand banking criteria and lending practices.