Tips to Help You Get Boat Financing Quickly
In real sense, getting a boat loan is not much different from getting a car loan. Both are an investment, and both require enough capital to be able to make the purchase. Owning a boat is a dream to many. The good news is that you are able to actualize your dream by owning a boat of your own. It is not as difficult and complicated as some would think. Yes, for you to qualify for the different financing options, you need to meet the requirements. Nowadays, various lenders have come up with well-structured financing options for those looking to get financed to purchase a boat. Since the amount of capital involved is high, the process you have to go through to secure the loan may seem complicated. Lenders are not willing to give you such a huge amount of money for your investment without a guarantee that the funds will be repaid. Understanding how boat financing options work will help you determine which form of financing will work for you. There are various forms of funding, such as bank loans and home equity loans. Below are tips to help you secure your boat loans quickly.
Just like you would prepare yourself for a business or home loan, you also need to prepare yourself before approaching a lender for a boat loan. It is unwise to show up at the lender’s office to seek a loan if you have not sorted out your financial information. For example, you need to have precise details about your sources of income, including the specific amount you wish to finance. The lender will want to see your financial statements to have a glimpse of how your financial situation looks. Before you start the process of asking for finances, take time to prepare your books, and ensure that they are clean and accurate. The lender may also want to know whether you have ever filed for bankruptcy, and if so, why. You should be able to defend yourself if you want the lender to approve that boat loan for you. Note that you may be required to reveal the assets that you own and their approximated value. A lender will only feel comfortable approving your loan if they are confident that you will be able to repay the loan. Don’t ruin your chances by failing to prepare yourself in advance.
Seek Loan Pre-Approval
One of the wisest things you can ever do when seeking a boat loan or other form of financing is to get a pre-approval. This is a letter that is usually given by the lender as a form of assurance that the borrower will be able to get the money after the loan application. It is good to ask the lender you plan to work with about the pre-approval. If they don’t offer it, consider other lenders in the area with reasonable rates and guaranteed pre-approval. Having this letter enables you to start shopping for the boat early enough, even if the money is yet to get into your account. In case you find a deal that you like in the boat showrooms, you are still able to bargain for it, knowing that the money will still come through. It also helps you to budget yourself and minimizes your chances of overspending on the boat purchase. In some way, a pre-approval quickens the actual boat loan application process and reduces the time it would have taken to get your loan. You should use this trick if you plan on asking for a boat loan.
There is usually a higher chance of getting a loan approved if you have collateral with you. No lender is willing to risk their money for someone who doesn’t offer them any security, considering the size of the loan. As a borrower, you need to opt for the secured loan because it guarantees you lower rates and a more extended repayment period. When you seek boat financing, you need to show the lender that you are less risky. This increases the chances of them giving you the loan. Provide evidence of your employment if you have a job. Be frank about your property ownership, including savings and investments. This puts you in good standing with the lenders. Don’t shy away from stating your position and declaring your rightful assets. Besides, if the lender considers you less risky, you might get lucky and end up getting better interest rates. If you don’t own property, don’t feel bad for yourself. You could choose to work on your credit score. If you have a good credit score, the lender will have no reason to deny you the loan.
It is okay if you cannot afford to purchase a boat with your own money. That shouldn’t worry you. There are other boat financing options such as boat loans or home equity loans. Consider the tips above to increase your chance of getting a boat loan.