Refinancing your vehicle makes sense given you meet the timeline and lender qualifications. It can allow you to find a better loan, lower your interest rate, or lower monthly payments. However, the auto refinance checklist can be lengthy when it comes to what’s needed to complete the process.
Let’s look at the essentials and make it easier for you to be prepared.
1. Proof of Employment and Income
This is often requested via tax forms. The needs of hourly/salaried employees, freelancers, and self-employed workers will differ. Make sure you are prepared with your W-2 forms.
2. Proof of Residence
This is simply to prove your address is current. Utility bills, a driver’s license, a bank statement, and more can be used to prove residency.
3. Proof of Car Insurance
You must prove that your car is properly insured. Use either your insurance ID card or a declaration page from the company.
4. Vehicle Info
You should know basic information about your vehicle like the make, year, model, VIN, and payoff of your current loan.
5. Credit History
Be aware of your credit history when looking to refinance a car. Many lenders require a minimum FICO score in the 500s. You may qualify for a lower interest rate if you’ve improved your credit since the original loan. You can safely and securely monitor your credit at Gravity Lending’s Lending Lounge.
6. Debt-to-Income Ratio
This is important because it shows you will be able to keep up with payments, as well as your current bills. Many lenders require a 50-60% ratio to qualify.
7. Payment History
Your payment history on the previous loan will impact your ability to refinance, so stay on top of your monthly payments.
8. Title Information
Once you get approved for a refinance, you will need to pay off your old loan and transfer all information to your new lender. This also includes your car title information. Gravity Lending will take care of the loan payoff and title transfer for you, but it’s important to note these steps.
Refinance with Gravity Lending
Gravity Lending makes the refinancing process easy and ensures you find the right lender for your specific needs. Contact us today with any questions and to start the refinance process. Also, check out our blog to learn more.