You’ve been doing your research, test-driving cars, and you’ve finally found the right car you want to buy. You know getting pre-approved for an auto loan simplifies the car buying process, but you’re wondering how to go about it. Camino has you covered. We’ll help you understand how to get pre-approved for a Camino auto loan and explain some of the benefits.
The Preapproval Process
When you apply for preapproval, you should be ready to buy. Here’s some important information for you to know and documents you need to have prepared before you apply for a Camino auto loan:
Income & employment verification, including your gross annual income, which is your income before taxes and social security are taken out. You’ll also need your employment status, whether you’re full or part-time or self-employed, and you’ll need your employer’s name.
Housing information, including what your monthly rent or house payment is, whether you rent or own, and your length of tenancy.
Identifying information, including your legal name, driver’s license, date of birth, social security number, and contact details.
Loan information, including how much of the loan you’ll need to have financed and what payment terms or length of payments you want to make. The longer the loan term is, the less you’ll pay each month, but it will cost you more in the long run. As a rule, you shouldn’t spend more than 10-15% of your monthly income on your auto expenses, including your loan payment and related expenses like license, registration, repairs, insurance, and other costs.
Vehicle trade-in information, if you’re going to trade in your current vehicle, you’ll need your title and registration.
In order to get pre-approved for an auto loan, a credit report needs to be reviewed that helps determine the loan amount you’ll qualify to receive and the rate that you’ll be given. Most preapprovals require a hard inquiry on your credit that can cause your score to go down temporarily. However, there are many benefits in the long run.
Benefits of Getting pre-approved for a Camino Auto Loan
When you get pre-approved, especially from Camino, since we’re a not-for-profit credit union, you’re more likely to receive a lower interest rate for your auto loan. It also gives you more negotiating power because you’re considered a cash buyer, so you won’t have to negotiate with car dealers and deal with unnecessary price hikes, among other benefits.
Need to Get pre-approved for Your Auto Loan? Contact Camino Today!
We’ll help you get pre-approved on your Camino auto loan, so you can get behind the wheel of your car with quick local decisions from our Member Advisors. Our loan experts are here to listen and support you. We want our members to find the best option that works for you. Need help buying your car? We also provide car-buying services at Camino to give you more peace of mind. Please go online at caminofcu.org, give us a call at 800-835-3400 to speak with one of our Member Advisors, or contact us for more information.