Boat Financing Tips – Get Boat Loan Approved in Minutes

boat loan tipsArranging the finances for purchasing your dream boat may often look to be a daunting task. But please note that obtaining a boat loan essentially is no different from availing any other type of loan like car loan or home loan.

While applying for getting a boat loan you should first understand that lenders are there to make money. They are in business of lending money so as to earn more money for them. Do not expect moon from them. Be rational, and understand that if your credit history is bad your trustworthiness, as a borrower, gets a hit and you can only expect costlier loans.

Tips for getting your boat loan application approved in minutes

The most important tip for getting your boat loan approved quickly is to do your homework properly. Put yourself in the shoes of the lender and try to understand what he may be looking in your application while approving or disapproving that.

Here are a few key things which might ensure you to opt in a boat loan quickly.

  1. Shop around: Understand that different lenders have different approving criteria . Begin by contacting all the major credit reporting bureaus for your credit reports.
  2. Arrange the down payment: Lenders typically require you to pay an amount of around 15 to 20% of the total cost as down payment. Arrange this amount before you start applying for the loan.
  3. Check your liquid assets: Boat financers typically want that a definite portion of your assets is in liquid form. This assures them that you are in a position to finance your bills and make payments for your periodic requirements.
  4. Note the difference between pre-qualified and pre-approval: Understand that the approval is the preferred status, which means your income and assets have been verified by a lender (pre-qualified) and you are authorized for a specific boat model and purchase amount.
  5. Be ready with documentation: You should keep at least two years bank statements and your income statements along with the details of your assets and liabilities ready with you while making an application for your boat finance.
  6. Feel complete details of loan application: Last and the most important tip for ensuring a speedy boat loan approval is to ensure that all the details required in your loan application are filled completely and accurately.

How to evaluate a boat loan offer

At times you may find that you are qualified for getting a boat loan approved from more than one lender. You must be in a position to evaluate the pros and cons of different boat loan offers available to you. You should be in a position to read the fine print before signing the dotted line.

Here are a few tips which will help you in deciding which loan offer is best suited for your needs.

  1. Know your credit score: If you know your credit score then you would be in a position to bargain with the lender in an informed way. If your credit score is good then you can expect better interest rates from the lenders.
  2. Know about the fees: Please be ready for discovering hidden fees like application fees, contract execution fees or early pay off fees in your loan documents. They may sometimes look to be a small amount but over a period of time they may accumulate and make significant difference in the value of the offer.
  3. Understand the jargon: Make yourself familiarized with the jargons of the financing industry understand how loan terms, your monthly payments, and the interest rates affect the final costs of a boat loan applicable to you. We encourage you to make use of the boat loan calculator we have on this site.
  4. Understand the difference between fixed rate loans and variable rate loans: Fixed interest rate loans allow you to lock in the rates for the full term of the boat loan. They make it easier for you to budget your monthly payments. On the other hand variable interest rate loans change the rates during the course of time. They may sometimes cause a surprise depending upon the market conditions. But since variable rate loans remove the element of risk on lender’s side, you may get a better deal here.
  5. Consider buying a new boat at a boat show: Lenders sometimes offer special financing rates and programs tied to a particular boat show. You may also sometimes find attractive pricing on your dream boats.
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Lots of approximations and assumptions have been made while developing the calculators.

Please make your own calculations before making any financial decision.