For many people, a boat is a relaxing form of
recreation, but the process of applying for a boat loan can be long and
tedious. Unlike home, a boat is not a necessary item, and as such, many
lenders look for only the most credit-worthy applicants who fall into
the higher income categories. This may not always be the case, but for
many lenders do follow that formula.
Choosing a boat
Before
you think about applying for a boat loan, you need to find the boat you
want to purchase. Visiting a boat dealer will give you some insight
into the prices of the boat you want but also how much down payment you
will need, the monthly payments, maintenance costs (may or may not
include winter storage), and a general idea of whether you will qualify
for the loan on your dream boat.
Choosing a boat before you
attempt to obtain financing for the loan saves time and frustration
since you will be able to work within pre-defined parameters if you
locate the boat and then find out if you meet the preliminary
qualifications for a boat loan.
The pre-qualification process
When
you visit a boat dealer, the salesperson will help you choose a boat
that meets your specifications but also one for which you are likely to
be approved for a boat loan. They understand that every customer who
walks onto the lot wants a sixty-foot yacht, but they also know that
only a small percentage of those who want one will qualify for a loan
to buy it.
In order to time for you, the boat dealer, and the
lending institution, the sales person will obtain some general
information that will tell him how much of a loan you are likely to
obtain. He is unable to qualify you in terms of credit unless you tell
him specific information, but he can qualify you in terms of loan
amount based on your income.
Applying for the loan
After
the dealer has helped you choose the boat for which you are most likely
to obtain a boat loan, either the salesperson or someone in the
dealership's financial office will sit down with you to obtain the
personal and financial information that is necessary in order to submit
the application to the lender.
You will have to provide several
items of information such as name, address, telephone number, tax
identification number, employer, income, banking information, and
credit references. In addition, the dealer may ask for a copy of your
pay stub to verify your income.
If you re self-employed, you may
have to show some documentation provided to the tax authorities in
order to verify how much you make. These items will vary from one
lender to another, but you should go to the dealership prepared in
order to save time.
Closing the loan
Once you have
applied for the loan and been approved, the dealer will arrange for you
to return to the loan to sign the sales contract for your boat loan.
Before returning, you should have secured insurance for the boat and
arranged for storage or docking if it is too large to be stored at your
home. If the dealer offers docking services and has space available,
you can choose to leave it there.
Jerry Warner writes general finance and loan articles for the Bad Credit Loans Online website at http://www.badcreditloansonline.co.uk
1 comments:
Boat loans need a down transaction, and you should strategy on 10 % for most. Do not let a down transaction need from a particular bank get the best of you.
Payday Loan
Post a Comment