Buying A Car

The process of obtaining a loan is 1. Pre-Qualification, which a lender gathers information about the income and debts of the borrower and makes a financial determination. 2.Application, this is actually the beginning of the loan process and usually occurs between days one through five of the loan process. 3.Processing, this occurs between days five and twenty of the loan. The processor goes over the credit reports and verifies the borrowers debts and payment histories as the VOD's and the VOE's return. 4. Underwriting, this occurs between days 21 and 30 or sooner. The underwriter is responsible for determining whether the combined package passed over by the processor is deemed as an acceptable loan. 5.Mortgage Insurance, this occurs when the borrower has less than 20% of the loan amount to put towards a down payment. The loan is now submitted to a private mortgage guaranty insurer and this person provides extra insurance to the lender in case of default. 6. Pre-Closing, which occurs between days 25 and 30  this is when a closing time is scheduled for the loan. 7. Closing, this occurs between days 25 and 45 of the loan process. This is where the loan is closed with a cashier's check. This is the time when the borrower finishes the loan process and actually buys the car.

Down payments are the difference between the loan amount and the purchase price, usually paid immediately upon purchase with cash or a trade in. These are important because it is the part of making a major purchase like a car or home. A down payment is a sum of the money that is subtracted from the purchase of your price.

The value changes over time with buying a car because a car is not as good as it was when it first came out the more years that go by the better cars get and the more expensive they get so on one will want to buy a car for just as much as a brand new car.

Three things that every person should know about to buy a car is:
1. Make sure you either pay in cash or get a loan and make sure that you pay off the loan.
2. Get a good down payment
3. If you are going to buy a car and sell it make sure you do it in good time so that the car still has good value.

Information source: www.americanloansearch.com/info-loanprocess.htm
News Article: http://journalstar.com/business/article_15ab540d-0b2a-5508-9e30-15ef152fb583.html
Video: http://www.checkbook.org/auto/carbarg.cfm
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