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Documents Required for a Car Loan – What Are They?

You can save yourself a great deal of time by having the right documents in hand when you apply for a car loan. Here is a checklist of the basic paperwork that lenders will want to see before they approve a car loan.

  • Proof of income goes without saying, but there it is anyway. Usually this is a pay stub, but for the self-employed it may be tax returns for the past couple of years.
  • Proof of residence is another given. Lenders want to know where to find the vehicle in case they have to get it back. This may be a rent receipt, utility bill, or driver’s license. The key is that the address on the document must match the address that you give on your loan application.
  • Your social security number must be available. The easiest way to prove the number you provide is actually yours, is to bring your card to the lender.  Lenders need your SSN to validate your identity, and to run your credit.
  • A lender will also need pertinent information about the vehicle they may loan against. So, you will need to provide a copy of the dealer’s agreement that includes the VIN and total amount to be financed.  Of course, if you are arranging your financing through the dealer F&I (Finance & Insurance) office, they will handle this information for you.
  • Lastly, a lender is going to want to see that you have a valid driver’s license, as well as proof that you have full coverage on the vehicle. The valid license is easy, just show it to the loan officer. You will need to ask your insurer to fax a copy of proof of insurance directly to the lender before your loan will be finalized.

That said, there are a few exceptions to these requirements.  Go here to learn more about financing a car without a license or without proof of income.  In such cases, lenders will need a very good reason for lacking such documentation, and you may spend more time searching for lender willing to approve you for a loan.

We enable you to apply for financing on the web.  During the application process, we don’t require you to upload any such documentation via the web.  However, once we’ve placed your application with a lender who wants to fund your loan, they will require proof of income, residence, etc, prior to final authorization.

 

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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