What is typically needed to qualify for an auto refinance loan?
2010 March 8
Like is it credit score, credit history, current debt, collateral?
Any information would help.
Thanks.
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Like is it credit score, credit history, current debt, collateral?
Any information would help.
Thanks.
First, they want to make sure you have plenty of equity in the vehicle. Credit history and banking relationships are important. Debt ratio is another factor, as is your employment history.
In order to qualify for an auto refinance loan many loan lenders require that you meet the following criteria:
* Be at least 18 year old.
* Posses a valid drivers license
* Current US Citizen
* A yearly salary of 26,000 or a cosigner
* Have proof of current auto insurance
Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool – carquotes.fateback.com
Auto finance is what I do for a living and this should shed some light on your question.
Below is a list of factors that auto lenders look for.
Factors.
1. Loan to value (LTV).
2. Age of vehicle.
3. Term of loan.
4. Miles on vehicle.
5. Down payment.
6. Time on job.
7. Time at residence.
8. Monthly income before taxes.
9. Credit score/profile.
10. Total debt to income including new payment.
What they look for;
1. Between 85% and 115%.
2. No older then 8-years.
3. 36-72 months.
4. No more then 60,000.
5. 10% of the sales price or $1,000.00.
6. 2-years.
7. 2-years.
8. $1,500.00 to $2,000.00 depending on lender.
9. 540 or above with 4 paid as agreed lines of credit with 1 being a installment loan paid at least 12 times for at least $150.00 a month and in the credit bureaus for at least 3 years.
10. Not to exceed 45%.
Another thing that comes into play is called payment to income ratio so depending on the term of the loan and the interest rate you would have to budget for the payment. Most lenders do not exceed 16%.
Good luck and please do not respond to any offers you see here they are all scams.