Alliant - Final Approval Requirements

[dacookieismine]

I just had the weirdest experience with Tesla Lending/Alliant, so I wanted to share with you guys to see if this is normal.

My tesla is scheduled to arrive in a couple of weeks, so I applied for a loan through Tesla Lending. A few hours later, I received an email from Tesla, presenting me a loan offer from Alliant. The weird thing about this offer is that "**Final Approval Requirements**" says "None". Then I called the credit specialist at Tesla to ask what this means. He confirmed that basically I don't need to present any proof of income, or any documents whatsoever. He also said that some applicants need to present further documents but some don't. However, he sounded like it's more common when no further documents are needed. If he were right, I'd expect a lot of you to have similar experiences. Could you please verify that?

My understanding of the auto loan underwriting is that the debt-to-income (DTI) ratio is not to exceed 40%. What if I have 3 other mortgages and I can only borrow up to $20,000? Here, Alliant is giving me an offer to fund up to 90% of the configuration price.

Another thing that is weird is that there doesn't seem to be any credit inquiry. I have several credit monitoring services through either some of my credit cards or credit karma. Usually, they are very quick on updating any hard inquiry on the day/next day of the inquiry. For example, I've had two mortgage inquiries in the past and I would be able to see the notification from these monitoring sites telling me about the hard pull, almost immediately. However, it's been a few days since I applied through Tesla Lending and got approved for this loan from Alliant. I still don't see any credit pull. I suspect that they didn't even check my credit before giving me this loan. Does that sound normal?

 

[steve841]

FWIW ... I financed with Alliant.

I've never had an easier process. All online other than speaking to rep on phone for 5 minutes.

 

[ev-now]

Alliant will not take the credit enquiry until under 30 days until delivery usually, as otherwise they hit you multiple times. Not sure about the DTI or no further documents. I didn't need any documentation, I suspect most people applying for credit for a Tesla have a high enough credit rating they don't worry about it. After all Repoman can always come collect your Tesla.

 

[ev-now]

FWIW ... I financed with Alliant.

I've never had an easier process. All online other than speaking to rep on phone for 5 minutes.

Pretty much same. 5 minutes, 3 emails. Model S in possession. Probably the easiest loan of it's size I've ever done.

 

[Model S M.D.]

I was approved in less than 5 minutes, no documents required, except for MVPA

Not sure about DTIs and such...

 

[Max*]

The "D" of the DTI is visible from your credit report. And if you filled in your income into Alliants online form (do they ask?) then they have your DTI.

 

[dacookieismine]

Well, there are two things here - (1) yes I agree that the D (debt) will show up on my credit report and the I (income) is filled in on the form as I applied for the loan. However, I'm surprised that they don't request any proof. (2) assuming that they take my word for it, they approved a loan for me that will put me on a DTI over 60% because I have two other mortgages. Every major bank I go to tells me that their underwriting is based on a 40% DTI guideline. I know that the mortgage underwriting is much more strict because of the subprime crisis several years ago, but I didn't expect the auto loan industry to be this lenient.

Well, to clarify, I'm not complaining about getting away with this massive loan. i'm just shocked about the practice.

 

[onautopilot]

I was a little dumbfounded when they basically didn't ask me for anything. I did the application and I assumed they would need a bunch of stuff from me. Not the case. It made me nervous that I was missing something and they would need more info at the last minute. Went off without a hitch though.

 

[justg0]

Same with me. I got approved by Alliant and never provided anything. Tech CU on the other hand needed bunch of stuff. But there I had applied directly and not via Tesla and I am out out state of CA. Alliant financed 90% at 1.99%. Tech CU 100% at 1.49% (5 years).

 

[Max*]

I didn't use Alliant, but my credit union almost didn't ask for proof of income.

Everything was finalized and approved, I show up a couple weeks later to pick up the check and last minute the VP gets a calls from the person who was supposed to cut the check (underwriter? someone in finance? dunno) and they're talking, and he turns to me and goes "by any chance, can you prove your income?" Thankfully, I came prepared, so I whip out my paystub, and he's on the phone talking to her "yeah, his salary is exactly what he said it is. I'm looking at the paystub now. I'm sure"

I thought it was pretty funny that the VP believed me without checking and approved the loan, but the (finance person? underwriter?) didn't want to cut the check without proof.

 

[⚡️ELECTROMAN⚡️]

I didn't use Alliant, but my credit union almost didn't ask for proof of income.

Everything was finalized and approved, I show up a couple weeks later to pick up the check and last minute the VP gets a calls from the person who was supposed to cut the check (underwriter? someone in finance? dunno) and they're talking, and he turns to me and goes "by any chance, can you prove your income?" Thankfully, I came prepared, so I whip out my paystub, and he's on the phone talking to her "yeah, his salary is exactly what he said it is. I'm looking at the paystub now. I'm sure"

I thought it was pretty funny that the VP believed me without checking and approved the loan, but the (finance person? underwriter?) didn't want to cut the check without proof.

My DS just told me I don't need to bring proof of insurance when I pick up my car next Monday. That seems strange. I wonder if they have some other way of verifying income. I should have told them I made what our combined wages are, so I don't have to put my wife on the loan to get the lower rate.