It’s not uncommon for car buyers to ask, what is considered a well-qualified buyer? After all, you'll be positioned to get the most loan offers with the best rates if you are one. Tumminia Mazda shares what you need to be considered a well-qualified buyer.
High Credit Score
Your credit score is a key factor when it comes to financing. Lenders each have their own requirements for approvals, so there isn’t a set rule when it comes to the exact score you need. However, generally, experts recommend that you have a score of at least 720 to be considered a well-qualified buyer. In addition to your score, they also look at your history and want a buyer without delinquencies, repossessions, or bankruptcies.
Low Debt-to-Income Ratio
When you apply for financing, we’ll ask questions about your buying criteria, including questions about your income and current expenses. We compare your income to what you already owe, because that shows how much you have available to buy a car. To be considered a well-qualified buyer, aim for a debt-to-income ratio under 36 percent.
Stable Employment
While your current parameters are important, lenders also want an estimate of your future. After all, auto loans last for years. They look for buyers with stable incomes and often prefer people who have had consistent income for years or don’t have large gaps in their employment. If you think your income could be a concern, consider making a large down payment to help demonstrate your buying power.
Apply for MAZDA Financing in Olathe, KS
While these are general things lenders look for, every buyer’s situation is different. While you can get the most attractive terms as a well-qualified buyer, we help buyers of all kinds. Our Mazda financing team is happy to help you find a loan that works for you. Visit Tumminia Mazda to get started!
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