Want to get a car loan in a hassle-free manner? Having the necessary documents ready on hand can make the car loan application process a whole lot easier for you. That’s why we’ve made a list of the 5 documents you need to have when applying for a car loan.
Proof of identity: Car loan lenders are required to confirm the identity of their applicants. For most lenders, a passport, driver’s license, U.S. visa, or any other government-issued proof of identity will suffice. In some circumstances, the lender may get in touch with third-party sources, like a consumer reporting agency, to verify your identity without documentation.
Proof of income: Lenders want to determine that you can repay your loan before they approve your application. And this goes beyond running numbers simply based on the interest rate. Lenders also typically assess your income, employment history, assets, monthly expenses, credit history, etc., to determine whether you can repay your loan, without trouble. So, when applying for a loan, you will want to have copies of your pay stubs and your bank statements or a W-2 ready.
Credit and banking history: When applying for an auto loan, you will need to provide your lender your Social Security number, and your address, name, and date of birth so they can pull your credit details.
Proof of address: Federal law requires auto loan lenders to gather information on your residence, so you will need to furnish proof of address. If your driver’s license has your current address, that will usually be sufficient for most lenders. If not, you may have to submit either your utility bill, mortgage statement, bank or credit card statement, lease agreement, property tax bill, Medicare or Medicaid benefits statement, or homeowners policy.
Vehicle information: If you are opting for financing through a dealership, the dealer will offer all the vehicle-related information to the lender. If you are working with a lender directly or purchasing the vehicle from a private seller, you will need to get a purchase agreement, bill of sale, or buyer’s order, which should also include the vehicle identification number, the purchase price of the vehicle, and details like the make, year and model of the car.