Yesterday, we spoke about auto loan refinancing and whether it was a good idea or not. Today, as a follow up, we’ll discuss how car loan refinancing in Brantford works.
This time it’s the Brantford auto loan team that explains.
Car Loan Refinancing In Brantford
Essentially, car loan refinancing in Brantford works in exactly the same way as getting any loan does.
Set a budget
Work out a household budget and list all your income and outgoings on a spreadsheet. Make sure to include everything you spend money on in a month.
Use the amount left over to calculate how much of a loan you could afford. Online auto loan calculators are very useful for that.
Auto loan prequalification is like getting a quote from a contractor. It gives you an idea of whether you could qualify for the loan and at what rate.
It’s not an offer and it’s not exact but they are pretty accurate and should give you a good idea of whether you could qualify for the amount you want to borrow.
Auto loan prequalification uses minimal personal information and won’t impact your credit score. You’re not committed to anyone at this stage.
Prepare your paperwork
Now is a good time to get your paperwork together. That means bank statements, salary slips, proof of any other income, proof of ID and address and any other paperwork you need for the loan application.
Take copies of everything for your own records as the lender will very likely want to see the originals.
Normally now, you would perform vehicle research, take test drives and tour the dealerships but as we’re refinancing this time round, we can skip those steps.
Research potential lenders
Instead of car research, we research potential lenders. If you’re doing this alone, check as much of the market as possible and check interest rates, conditions, any early settlement penalties and anything else that’s important to you.
If you’re working with our Brantford auto loan team, we can help you with all these steps.
Now it’s time to get auto loan preapproval. This will be exactly the same as before. Settle on a loan and lender you would potentially want to work with, get preapproved for the loan, check the interest rate, terms and conditions and sign on the loan if you like what you see.
Auto loan preapproval does can utilize a hard inquiry on your credit score, which is why we do it now and not earlier. You’re still not obligated to the lender until you actually sign the loan agreement.
If the terms or rate changes and it isn’t as competitive as the initial prequalification, carefully check the competition and go with that.
Auto loan refinancing in Brantford
You can perform all these steps yourself or we can help you with them. Either way, if you approach the process in an organized way, refinancing is a quick, simple and painless way to raise money or change the conditions of your existing loan.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!