We’ve mentioned before how getting pre-qualified for an auto loan can increase your buying power, but what does that mean exactly? We’ll outline how doing some planning before you shop can make a big difference when it comes to getting the best rates and payment plans no matter what type of loan you may need. Before you start shopping, you should get pre-qualified for a loan. Pre-qualification means that you would qualify for certain loan terms at a specific time with your chosen lender. This process allows you to be ready to make an offer when the right car is available.
How Much Can I Afford?
Getting pre-qualified for any loan will help you set your budget. Knowing what your spending power is before you shop can help eliminate disappointment before your heart is set on something out of your reach. You can easily start to weed out cars that are outside of your budget and minimize the guesswork of how much you might be able to spend. The salesperson you may work with can help guide you to a car that is best suited for your preset budget.
Know Costs Beforehand
Part of knowing your budget means knowing all the extras that may pop up before you buy. Getting a loan pre-qualified will give you more information about your loan before you shop for a car and help you know how best to spend your money. Being prepared can help you cut costs before you ever get to a showroom. With pre-qualification, you’ll know the length of your loan and what interest rate you may get.
Speed Up the Buying Process
With your loan documents and pre-qualification, you’ll save time in the buying process with pre-qualification. Once you find just the right car, you’ll already have your loan documentation started. United Heritage will already have much of the financial information needed to get a loan started as soon as you choose your new car. You may even have less paperwork to deal with during the purchasing process because you’ve already started the loan documentation by getting pre-qualified.
Because you’ll know your spending power before you ever deal with a salesperson, a pre-qualification will allow you to conduct a sale as though you were able to make a cash offer.
Getting pre-qualified from United Heritage means that you’ve done your homework and come prepared to buy, but it doesn’t mean that you have to make a purchase if the conditions aren’t just right for you. Our loan specialists are ready to answer any questions you might have during the entire process and are happy to help you make the right decision for your financial situation.
Clean Up Your Credit
During the pre-qualification process, United Heritage will check your credit history. If there are errors or if your credit score needs improvement, knowing this before you begin shopping can help stave off any disappointment after you’ve fallen in love with a car. This is a great time to work on improving your credit score or correcting any errors that may be on the report. Finding out your credit score should happen well before you are attempting to purchase a new vehicle.
Just like any loan process, there are a few things you need to do before you apply for loan pre-qualification. Because you are applying for credit, you may need to supply United Heritage with financial information such as pay stubs and previous tax documents. Applying is easily done online and can often be approved in less than an hour. Our loan specialists are ready to help you through each stage of the buying process and will guide you in getting the best loan for your situation. There are no upfront fees when applying for pre-qualification with United Heritage and we offer some of the most competitive rates available! We’ve also worked hard to expand our loan offerings at a time when many financial institutes are limiting borrowers.