When you apply for your auto loan, as with any other loan, you will be requested to supply certain documentation that proves that you are a good credit risk and have the financial ability to repay the loan. Your credit score, along with the documentation you supply, will be factored into the determination of the interest rate on your auto loan. Different lenders will require different documents in particular, but in general, here is a checklist of documents that most lenders will ask for. Bringing these along to your appointment with a lender will help speed your application.
Proof of income. Typically, two weeks of paystubs is sufficient to prove your claims of income if you have been with the same employer for a long period of time. If your paychecks are hand-written, you may need up to four weeks of statements, along with canceled checks. For self-employed individuals, tax returns are usually used to determine your gross income, and you may need to show copies of your federal returns for the past two years. If you have any other income such as rental income, alimony, child support or legal settlements, it doesnt hurt to include that documentation in your application as well. The higher you can prove your income to be, the better your application will look.
Other loans. Any other loans you may be carrying, including mortgage agreements, credit cards or any other payments you are required to make such as alimony or child support payments can establish a repayment history. This will be verified against your credit report to see how responsible you are in your payment schedules.
Proof of address. Any piece of official mail such as an electric bill in your name or a mortgage statement will generally suffice to prove your residence.
Vehicle information. If you are not pre-qualifying for a loan, you will need to include the dealers sheet or buyers order for the car you propose to buy, which supplies the vehicles purchase price, vehicle identification number, make, model and year. You should also have information on the cars mileage and original title (if a used car).
Proof of insurance. Before you drive the car off the lot, you will need to supply proof of insurance and notify the insurance company of your newly purchased and insured car.
