First-time buyers may be unfamiliar with securing a car loan and may not know that you can actually get pre-approved for financing before ever setting foot on the car lot. The Lincoln finance process is easy with pre-approval, which can even give drivers the upper hand during the negotiation process. To show readers what we mean, here's a breakdown of the pre-approval process and why it may be in your best interest as a buyer.
What Is Pre-Approval?
Getting pre-approved from a lender means you are conditionally approved for a car loan with broad terms. These terms include the principal amount, loan period, and interest rate, and will be given more concrete values when you decide to sign.
Pre-approval can be acquired by reaching out to a lender of your choice. Be sure to have documentation like your Social Security Number, State Identification, Proof of Employment, and a pay stub on hand, as they will be asking for this information.
It is also a good idea to check your credit score before getting pre-approved. Using our online credit estimator can be very helpful in the pre-approval process, as it can give you an idea of what kind of budget you're going to be working with.
Benefits of Pre-Approval
When you secure a pre-approval for a loan, it gives you a lot more negotiating power. Not only can you secure multiple pre-approvals to shop around for the best loan, but it can also show dealerships that you mean business. By identifying your budget and getting pre-approval for the loan, you can now focus on the best part of the whole car-buying process: picking out the perfect ride for yourself.
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