Boat financing is harder to come by than automotive and other forms. They therefore require a bit more research and vigilance in the sourcing. The aim is to get the highest amount possible at the lowest loan rates.
The car and home financing are hard to get on their own, so be ready for a harder assignment. On the flipside, a boat loan is not often sourced, so the sector is not crowded. The first step is to determine the size and type of boat required. This allows you to estimate and research on the availability and current costs. Fortunately, though the application criterion has changed over the years, the market rates for boats have greatly dropped.
The next step is to check out the offers on the table. This is easily done over the internet. Seek the various options available in terms of the financing institutions, terms and conditions and rates. The main areas to highlight on include the percentage of the purchase rate the institution is willing to provide, payment duration and the interest rates. Apart from the principal amount, consider additional expenses like processing and lawyer fees.
Application and Approval
Due to the recent global recession, most lenders have greatly changed their loan approval and underwriting process. This also affected the marine lending. Be well prepared for a longer approval process, stringent terms and document validation. For boat financing, the primary requirements are income verification and the specific boat purchase. The main restrictions are on the boat age and type, with high performance boats, aged types and custom boats high on the rejection list.
Many people are wary of boat financing. They often connect it with luxurious living, high rates and stringent penalties. On the contrary, there are very good rates and terms available for those that qualify. Various financial institutions have special packages for borrowers with bad credit scores and dodgy finance histories. However, with the proper documentation and following the procedure, you can skip the whole imagining having your own boat at Sandbanks Marina, to actually having it.
If you can’t afford to get your dream boat, financing is deflnitely an option for you. Even if you have loans bad credit problems, you still should be able to get the money you need.