LightStream loan application for self-employed people

[tvisdog]

Has anyone who is self employed applied for an unsecured loan with LightStream? If so, what was the process like? What kind of documentation did they require, if any, to verify income?

In my experience, applying for loans as a self employed person has been a total crapshoot. On our last car loan, they didn't do any income verification. But on our HELOC, they did, and they wanted W-2s which I don't have. It took a week of providing documents and patient explanations to the underwriter before they agreed to accept 1040s and bank statements as evidence of income.

 

[MikeATL]

I haven’t done anything with Lightstream, but my credit union wanted me to send a PDF of my last tax return and some recent bank statements. That seemed to be all they need and I think I’m now all approved (though something else might come up later when I get the actual paperwork from Tesla and finalize the loan.). Rate is 2.68% for 60 months.

Unlelated to the car, I tried to increase my credit line with AMEX and they had me sign an IRS document which gives AMEX permission to ask the IRS directly for my last two tax returns. My 2016 return has a partial year of W2 and a little investment income. My 2017 was a lot different with a lot of new investments and capital gains. My 2018 will look a lot like 2017. Not sure how they are going to treat fact that I don’t have two years of consistent income. Well have to see.......

I was also going to do something with another bank for an unsecured line of credit and they want my entire balance sheet and income documented.

Suggest you work the loans through 2-3 sources if you’re worried it will not be approved or take too long.

 

[tvisdog]

Thanks for the info. And yeah, I'm mostly worried about how long it will take. I don't want to start the process until I'm 100% sure that I'll be taking delivery within 30 days since that's the time for which most approvals are valid. But I'm worried Tesla will wait until a few days before delivery to assign the VIN and I'll be in a time crunch trying to explain to LightStream or my CU how small businesses work and that not everyone has W-2s and pay stubs.

 

[MikeATL]

I don't want to start the process until I'm 100% sure that I'll be taking delivery within 30 days

I was going to hold off and do nothing when my delivery was “Oct-Dec” and then all of a sudden it was “September” so I went into a panic to get the credit union loan going. Turns out my loan is going to expire just short of my 10/1 delivery date, but my contact said just to call and she would extend it and hold my approved rate (the new rate is 1/10 of 1/% higher). Probably easier to do that with a local credit union.

The 30 days is mostly protection for them in the event of interest rate movements. I would hope that they would be able to expediate a renewal of the approval without you starting over (your 2017 tax return isn’t going to change.) I would ask them the explain that process.

 

[Stacks]

I’m self-employed and going through Lightsream right now. They ask how much money you have in the bank on your application and that’s the only thing they’ve asked to verify so far.

 

[tvisdog]

I’m self-employed and going through Lightsream right now. They ask how much money you have in the bank on your application and that’s the only thing they’ve asked to verify so far.

How long have you been waiting for approval?

 

[Stacks]

How long have you been waiting for approval?

Not even 24hrs yet. They got back to me the next day since they were closed when I applied.

 

[Ejl80]

I'm not self employed, but they didn't ask me to verify anything, bank account, income, anything. And you can get funded whenever you want on the unsecured loan. I was funded well over a month before my car arrived.

 

[Stacks]

Well I was approved and that’s all they required.

My loan from them says that it is secured and they require I put them as a lien holder, so I guess they changed their process recently.

 

[Ejl80]

Well I was approved and that’s all they required.

My loan from them says that it is secured and they require I put them as a lien holder, so I guess they changed their process recently.

Secured vs unsecured from them is based on income, assets, and credit profile.

 

[Stacks]

Secured vs unsecured from them is based on income, assets, and credit profile.

Ah, gotcha.

I have 800+ credit, upper middle class income and assets, but I’ve always had a difficult time with being self-employed. Banks don’t like us.

 

[Ejl80]

Ah, gotcha.

I have 800+ credit, upper middle class income and assets, but I’ve always had a difficult time with being self-employed. Banks don’t like us.

Ugh. That sucks.