If you are currently in the market for a vehicle, there are likely plenty of questions running through your mind. While the questions may seem a little overwhelming, one term may stick out as you are doing your research: pre-approval. What does it mean? What are the benefits? How does it work? What does the pre-approval process entail? We’re here to answer these questions.

Pre-approval means that the lender has reviewed your credit report and has a good idea of what you’ll qualify for if you follow through with the lending process. A pre-approval is conditional, and an offer usually lasts for 30 days. Pre-approval typically involves a hard inquiry into your credit history, which is a good indication of your overall financial health.

If you are just starting your vehicle search, getting pre-approved can give you a better idea of your spending limit, and may assist you in staying within that budget. This will help you determine what your monthly payments will be, and in turn, help you decide which vehicle best fits your specific needs. By getting pre-approved, you can approach vehicle shopping realistically and will be less likely to set your sights on one that falls outside your price range. Another benefit to getting pre-approved is that the interest rate you receive through this process will likely be close to, or the same as the rate you end up securing when you get the loan. Getting pre-approved can also give you additional negotiating leverage at the dealership.

At DCCU, we are pleased to offer pre-approval options for our members so that they can know what loan amount, interest rate, and payment they’ll receive – all before visiting a dealership! According to DCCU Senior Vice President, Chief Lending Officer, Michael McAllister, “It’s a good idea to get pre-approved prior to your visit to the dealership. It helps you shop with confidence because you will know exactly what your payment will be with DCCU.” Finding the right financing is just as important as finding the right vehicle, and pre-approval can get you one step closer. To learn more about our current promotion or to apply for pre-approval, please visit mydccu.com/loans/auto or give us a call at 800.245.8085.

This article is for general information only and not intended to provide specific advice or recommendations for any individual.