Ask Ms. Gail: I heard I can get pre-approved for an auto loan. What does this mean?

QUESTION: I heard I can get pre-approved for an auto loan. What does this mean?

Answer: You can get pre-approved for an auto loan and get a draft to use at the dealership of your choice. So yes, that is a great way to go shopping for a car.

The great thing about a pre-approval is that normally 121 Financial Credit Union would approve you for the maximum amount.

That could be, for example, 50,000 dollars. Perhaps you know your budget and there are lots of things we don’t ask you that you know you would like to do.

Maybe you don’t want to spend 50,000 dollars. So you could write that check out for whatever amount you decide to use it for. Once you go shopping, you would pull that check out and make a decision and use it for whatever amount you want to.

So this is a great way to have your pre-approval. You know that you qualify for up to a certain amount and you know that you don’t have to use all of what you qualify for.