If you're thinking of paying off your current car loan and refinancing it into a new one, it may be a great strategy to help you save some money. This is usually because you have a greater chance of landing a lower interest rate with a car refinance.
Moreover, if you’re using dealer financing, it’s very likely that the rates may have dropped since you got your current loan. Hence, if you’re wondering how to go about the process of refinancing online, here’s the deal.
Apply For Pre-Qualification
Pre-qualification doesn’t hurt your credit score. All you need to do is provide the relevant person with details about yourself and your vehicle to see what you can save.
Provide and Confirm Your Details
Fortunately, most lenders already have an online application system to help you apply easily. All you have to do is figure out what offer works best for you and apply away. However, as with any loan, you may have to post an inquiry to your credit report and see if there are any more details necessary for the final contract.
Wait For Approval
Once you've accessed the online application form and applied for an auto refinance, wait till it gets approved. Approval does not usually take long if all the necessary documents have been provided, and if there are no issues with regard to your credit report.
What Documents Do You Need to Apply Online?
Make sure to have your mortgage and rent details along with previous addresses and social security number at hand in case the online application asks for it.
Proof of income
Lenders always need proof of income to determine whether you’ll be able to repay the loan. Hence, make sure to have your employment history and a paycheck stub at hand.
Auto Insurance Evidence
Some lenders may also ask you to provide proof of insurance. Hence, you may need to have your insurance card with you at all times, or when you're filling the application online.
Details About Your Existing Loan
Make sure to have all the details about your current loan, such as the balance, interest rate, duration of the loan, and lender's information.
Details About the Vehicle
Make sure to have details about the model, make, mileage, and the year you purchased the vehicle. You may also want to have the vehicle identification number with you in case it's required.
The Bottom Line
The online application process becomes much easier once you have your requirements and expectations sorted out. Speak to a reliable lender today and weigh out the pros and cons before you make a leap.