You have questions about secured loans, we have answers. Applying for a loan can feel like an overwhelming process. Before you can even apply, you have to be wary of personal factors like your credit score, debt-to-income ratio, and credit history. Then, once you start scouting the loan market,…
Why do I need to provide a Power of Attorney when refinancing my auto loan? This question comes up frequently as people are completing their auto refinance loan documents. It’s necessary to complete the title work for transferring your vehicle loan from your old lien holder to your new lender.
Look at it this way… do you enjoy going down to the DMV and waiting in the forever, long line to get your drivers license updated? That’s the same long line in order to get your title updated as well, and you need the change of title in order to process your loan. Therefore, the Power of Attorney form allows the company and/or lender processing your loan to complete the title work on your behalf.
Always be sure to ask questions if you don’t understand something, and read all the documents in your loan package (including the Power of Attorney form) before signing.