This post is part of a series dedicated to the ins and out of the financing process. This is the third post. Click here to see the previous part of the process.
Part three- The Financial Documents
Last week we covered how to complete the application. So at this part of the process, the application is already done and has been submitted to the lender. Even though you’ve completed the application to the best of your ability, be prepared for the lender to come back and ask for more information or clarification.
Once you have submitted your application, and it has been approved by the credit team (usually within 1-to-48 hours), the lender will begin to assess your options and what programs might be a good fit for your needs. This is when the lender will draw up the financial documents. The lease agreement will include information on payment terms and your financial responsibility.
It’s usually not necessary to have a lawyer go over the paperwork, but don’t be afraid to call in counsel if there’s something that doesn’t sit right with you or something you just don’t understand. Be sure to read the entire document carefully. Don’t worry! Though it may seem like there is a lot of financial jargon in the financial documents, almost all of it has to do with consequences and actions the lender may take if you don’t pay your bill on time. As long as you pay on time, you generally won’t have anything to worry about.
Remember, if you do have an issue paying, call your lender first before just skipping out on your bill. Chances are they will be much more willing to work with you if you call and explain your situation.
Did you have any trouble with the financial documents when you obtained financing?
Stay tuned for next week, where we will cover the final part of the process – the funds.