Get Financing Approval Before You Shop for Big-Ticket Items

If you are looking at a major purchase in the next few months, one way to save both a lot of time and money is by seeking financing approval before you actually start shopping (especially critical when purchasing a home). Buying a vehicle, a home, a boat, or any other large item generally requires financial assistance of some kind. If you can walk onto the car lot or the realtor’s office fully prepared and knowing how much you can afford, it makes the deal negotiations much smoother and hassle-free.

Pre-approved financing essentially means you go through the application process for securing a loan before you have begun shopping. The lender will provide you with pre-approval documents that you can use to provide proof you are serious about the purchase. It may also serve as a valuable tool for negotiating price. As a budget-conscious buyer, you have the advantage of understanding exactly how much you can afford to spend and how much it will cost you each month.

How to Shop for Pre-Approved Financing

Check With Your Bank

If you have been a long-time customer of your current bank, approach them first about financing. Since you have already established a relationship and a history with your own bank, you may have more options for getting the best interest rates and loan amounts.

Stop By Your Credit Union

Some of the lowest interest rates around are available through your local credit union. If you are associated with a credit union, schedule an appointment to see what kind of deal they can offer you for your big purchase.

Shop Around

While you may think your bank will do you no wrong, it pays to check out some of the lending competition. If you maintain excellent credit, you have much more opportunity to have lenders competing for your business. An internet search is a good way to look at different kinds of financing for different kinds of purchases. As the popularity of Internet business continues to grow, you may find there are financing programs available now you were not even aware of.

Look Locally

Beyond the local bank and credit union, there may be other local lenders looking for your business. Check out the ads in the local paper and phone book. You may be a very welcome addition to a smaller, local lender than you are to a big business lender.

Seller Financing Is Still An Option

Financing your new car through the place where you make the purchase may not be the best way to save money but it is still an option for you to consider. You can contact the company and inquire about the pre-approval process over the phone or via the Internet before actually going to the lot and facing the sales personnel.