Website design By BotEap.comIn the past, when sailing was not as popular as it is today, it was much more difficult to find a person or organization to provide you with a boat loan. Today, the condition is the opposite, and the buyer’s problem is to find the right company to obtain a boat loan. Generally, there are three main sources from which you can purchase a boat loan; your bank, your credit association as well as financial services institutes, also recognized as specialists in marine loans.

Website design By BotEap.comIn the same way, there are 3 common types of loans that are presented to people who want to get boats on a loan. One of these is the “fixed-rate, fixed-term” type of loan that has a uniform monthly payment that is required over the entire term of the loan. “Variable rate” loans do not contain a fixed loan rate. The rate varies with distinctive rate indices. To give an accurate understanding of this type of loan, the adjustable duration should be observed. Balloon payment loans are fully repaid at the end of the loan period.

Website design By BotEap.comMany new or used boat dealers employ their own financial supervisor to handle boat loan management. These supervisors take into account things like the submission of the application form plus the things that need to be done to finalize the deal on behalf of the buyer. Many dealers are associated with the National Association of Marine Bankers, a union of marine lending professionals. When applying for a boat loan, be sure to indicate that you want to negotiate with the National Association of Marine Bankers. If you do it this way, you can get additional discounts on transaction costs.

Website design By BotEap.comPlus, getting your boat financed by an authorized dealer can also be to your advantage. First of all, these distributors often have contacts with various sources of financing. Not only will there be a great chance that you can get your loan, however, you can also have a chance to decide which source you want to get. Such distributors may also provide manufacturer’s warranties for specific items. This will greatly protect your boat financing. Additionally, due to their connection to boat manufacturers, dealers can offer you discounted outlets for specific makes in addition to models. These outlets can be “late down payment,” “interest-free for several months,” or reduced prices for a specified period.

Website design By BotEap.comThe filing method can change between many lenders. Lenders can accept loan applications over the phone or through a completed application. Whether it is by phone or not is determined by the amount of the boat loan requested. The higher the amount, the more details need to be remembered. High loan levels require that all points be noted in black and white on a completed application. In the event that a credit inquiry is needed for the level of the boat finance loan, the applicant may be required to file tax returns for a specific number of past tax years in addition to the personal income statement.

Website design By BotEap.comInformation related to creditworthiness is important when it comes to determining the correct size to provide for a boat investment loan.

Website design By BotEap.comBefore submitting your boat loan application form, you will undoubtedly need to have settled on the boat for which you want to obtain boat financing. Some information about the boat such as the year, make and model, additional equipment and updates, all sums are included in the calculation of the absolute value or cost of the boat. The significant additional information that you should be ready to provide the lender is as follows:

Website design By BotEap.com(1) the purchase price of the boat,
(2) additional accessories you are deciding to install,
(3) tax expenses as well as
(4) documentary charges.

Website design By BotEap.comBy freezing the boat finance application, you allow the loan company to examine your credit standing. This is called the loan underwriting method. These methods will include looking at your individual creditworthiness as well as the actual value of the boat to be invested. Your credit will be determined, as well as your debt-to-income ratio. The actual market rate for the boat you want will then be investigated by researching other boat sources and obtaining the prevailing average price for the particular model and make.

Website design By BotEap.comAfter all of the above has been done, and if the results are favorable for the boat loan, then the contract will be settled and you will claim the boat. For additional security measures on the part of the lender and the lender, the entire loan transaction can be provided to an escrow service to reduce the possibility of fraud.