What Documents are Needed to Refinance a Car?
Before you can refinance your car loan, lenders like Gravity Lending will require a few documents to get started. So, before you can get started saving, you’ll need to comb through your file cabinet for a few things. If you don’t keep these on hand, don’t worry. You can easily request the documents needed to refi a car from your employer, residence, or insurance company. We’ll cover the documents needed to ref your car loan and tell you exactly where you can find them.
Proof of Employment and Income
A refinanced car loan will typically require some proof of income. Lenders will often request this in the form of tax forms or tax returns. Refinance car loan lenders need this information before you can be approved for a new loan. There are different requirements for salaried, freelance, and self-employed individuals, and each may require a different proof of income.
Hourly/Salaried Employees – Your lender will likely request pay stubs for the last two pay periods before allowing you to refinance your car loan. If you apply at the beginning of a year, they may also request a W-2 from the previous year.
Freelancers/Contract Employees – The documents needed to refinance a car will change if you are a freelancer or contractor. Because freelancers and contract workers receive multiple 1099s from several companies, auto refinance lenders will ask for your tax returns instead.
Self-Employed – For those who are self-employed and shopping for a refi car loan, lenders will instead ask to see tax returns from the last two years.
If you need a copy of your W-2, you can always request one from your employer. Additionally, tax returns can be requested online by visiting the IRS’s website. Lastly, as a final tip, we recommend notifying your lender of any additional jobs or sources of income you have. This knowledge can be beneficial for a lender to know and may make a difference in your application.
Proof of Residence
Sometimes, your lender may request proof of residence when there is a discrepancy in your credit report or the address on your driver’s license doesn’t match. But don’t worry, you can still refi a car easily by digging through your filing cabinet. Below are some simple documents you can use to prove your address to a lender.
- Utility Bills (Gas, Electric, Water, etc.)
- Driver’s License
- Bank Statement
- Mortgage Statement or Lease Agreement
- Property Tax Bill
- Homeowners or Renters Insurance Policy
Proof of Insurance
To refinance your car loan, you’ll undoubtedly need to provide proof of your car insurance policy. You may provide proof of your policy with your insurance ID card. Alternatively, you may use a declarations page from your insurance company. Be sure that you have one of these documents before proceeding; they are usually tucked away in your car or files at home, but you can’t refi your car loan without them.
To process your application and approve you for a refinanced car loan, a lender will require the following information about your vehicle:
- Vehicle Identification Number (VIN)
- Payoff Amount for Your Current Loan
All this information is easily accessible from your vehicle’s registration card. The only thing that is not included on a registration card is the payoff amount for your current loan, which you can access from your current lender.
Refinancing Your Car Now
If you have each of these documents, you can get started refinancing your car immediately. Work with a team of experts like the one at Gravity Lending to get started and save up to 18% monthly on average with a refinanced car loan. With hundreds, if not thousands, of dollars in savings how can you afford not to? Apply now for the best rates in the country.