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Navy Federal Auto Loan

Contributor

Navy Federal Auto Loan

I just applied for a Navy Federal auto loan for about $12000 on a new car (i have about $7000 to put down). My credit score is 582.

Fortunately I wasnt "AUTO-DECLINED" but it wasnt approved either. She said based on my credit if approved my interest rate would be 12% which is bananas considering my credit score. It has to go to a comittee for approval. Im SOOO nervous.

Anyone think I have a chance?

10 REPLIES
Contributor

Re: Navy Federal Auto Loan

Did she say committee or underwriting? I am on the Credit Committee at the credit Union where I work  members can request a meeting once they are denied to appeal with the credit committee so if you haven't been denied your loan probably went to underwriting. Let us know what they said.
Contributor

Re: Navy Federal Auto Loan

I will keep you updated.
What is underwriting?
Contributor

Re: Navy Federal Auto Loan

Underwriting is the person who approves the loan usually someone that has hire lending authority than a loan interviewer which is the person that took your loan application @ NFCU if the computer did not tell her/him that you were pr-approve then it has to go to lending committe which is under writing).

 

 The Credit Union where I work has diffrent levels of  loan officers that have diffrent lending authority for those member that maybe credit challenge or DTI(debt to income ratio may be to high) they will have to go to underwriting who has more lending appoval.

 

Let me know if you have anymore question I will try to help youSmiley Happy

Contributor

Re: Navy Federal Auto Loan

UPDATE

 

Ok so Navy Federal countered my request for the $12000 loan with a maximum loan amt of $7800. Fortunately I was still able to recieve the car I wanted (2010 Hyundai Elantra) by putting more $ down, about $8000. What I dont understand is that now that I have given NFCU the vin year/make/model the loan still has to be approved again!!? I dont get it? Why would they call to tell me I could borrow up to $7800 if now they must review the request again? Either way, they let me drive home in the car, the dealership seems to think its just a formality, and that I will be given the green light in a few days. i hope so Smiley Happy Pretty stoked.

Valued Contributor

Re: Navy Federal Auto Loan


armyguy90 wrote:

UPDATE

 

Ok so Navy Federal countered my request for the $12000 loan with a maximum loan amt of $7800. Fortunately I was still able to recieve the car I wanted (2010 Hyundai Elantra) by putting more $ down, about $8000. What I dont understand is that now that I have given NFCU the vin year/make/model the loan still has to be approved again!!? I dont get it? Why would they call to tell me I could borrow up to $7800 if now they must review the request again? Either way, they let me drive home in the car, the dealership seems to think its just a formality, and that I will be given the green light in a few days. i hope so Smiley Happy Pretty stoked.


 

Congratulations!

 

In the end, you'll be glad you made a large down payment. So many of the folks on these forums are upside down on their cars. Way to go...

Contributor

Re: Navy Federal Auto Loan


armyguy90 wrote:

UPDATE

 

Ok so Navy Federal countered my request for the $12000 loan with a maximum loan amt of $7800. Fortunately I was still able to recieve the car I wanted (2010 Hyundai Elantra) by putting more $ down, about $8000. What I dont understand is that now that I have given NFCU the vin year/make/model the loan still has to be approved again!!? I dont get it? Why would they call to tell me I could borrow up to $7800 if now they must review the request again? Either way, they let me drive home in the car, the dealership seems to think its just a formality, and that I will be given the green light in a few days. i hope so Smiley Happy Pretty stoked.


 

Congratulations on the new carSmiley Happy
Senior Contributor

Re: Navy Federal Auto Loan


armyguy90 wrote:

UPDATE

 

Ok so Navy Federal countered my request for the $12000 loan with a maximum loan amt of $7800. Fortunately I was still able to recieve the car I wanted (2010 Hyundai Elantra) by putting more $ down, about $8000. What I dont understand is that now that I have given NFCU the vin year/make/model the loan still has to be approved again!!? I dont get it? Why would they call to tell me I could borrow up to $7800 if now they must review the request again? Either way, they let me drive home in the car, the dealership seems to think its just a formality, and that I will be given the green light in a few days. i hope so Smiley Happy Pretty stoked.


 

While you have been approved for an amount, the auto loan to value, age and mileage must also qualify.  Lenders have maximum age and mileage restrictions and they require the auto value to be within a mandated ration.  Some will loan retail, some retail plus a percentage and some other variations of blue book.  If you have been approved on your finances/credit....it is just a formality of making sure the vehicle qualifies.

 

IMO IME  Smiley Happy

 

 

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
New Member

Re: Navy Federal Auto Loan

While you have been approved for an amount, the auto loan to value, age and mileage must also qualify.  Lenders have maximum age and mileage restrictions and they require the auto value to be within a mandated ration.  Some will loan retail, some retail plus a percentage and some other variations of blue book.  If you have been approved on your finances/credit....it is just a formality of making sure the vehicle qualifies.

 

IMO IME  :smileyhappy:

 

----------------------------

 

You are good. The formalities mentioned above are usually reserved for used cars than are not sold by a licenced dealership.  You are buying a New car, at a licenced dealership, with 52% downpayment. I don't think any bank in their right mind would turn you down with that down payment at any APR, given you don't try to finance it for 84 months or something crazy like that. While on that topic, try to payoff that loan in 36 months or less. Reason being, while 12% APR is a good rate given a 582 score you are still paying alot of interest and the shorter the term of your loan the less you have to pay in interest overall. I would try to refinance after 6-12months to see if you qualifiy for a lower rate as your score will improve noticably in that time period.

Super Contributor

Re: Navy Federal Auto Loan

TU does not like balance on the installment loan. It is better to pay off 35% of the loan principle and you'll see a big gain in TU scores. That is my experience from the last 3 car loans I had.