At first glance, getting money for a boat seems like a scary task. Most bankers decide on boat loans in less than an hour. They like being able to give loans right away. If the lender has a website, they can usually make a decision in minutes, 24 hours a day, seven days a week. All you have to do is fill out a form and click the "Submit" button. You should know the answer very quickly.
When looking for the right lender, make sure they have a lot of experience with boat loans. This is especially important if you want to buy a used boat, because a company that specialises in boat loans will know the laws about liens and boats. Simply put, a lender who knows what they're doing can keep you from buying a boat that doesn't have a clear title and will cost you thousands of dollars to clear.
Loan officers who specialise in boat loans will also know how to add value for options and subtract value for damage or wear and tear. Talk to different lenders and compare their terms to find the best deal. You should look at the different loan terms, down payments, and interest rates. Keep in mind that the loan will last longer if the payments are smaller. If you can afford higher payments, it is better to get a shorter loan term. In general, shorter loan terms cost less than longer ones.
A 20 percent down payment is usually the norm when buying a boat. In some cases, a lender may ask for more as a down payment. The amount of the down payment will depend on a number of factors, such as the loan amount and credit history. On the subject of credit, you should check your own credit history before you apply for a loan. If you find any mistakes or old information, you should fix them before you apply. Before giving you a boat loan, lenders will always check your credit.
There are other things that a lender will probably think about when deciding whether or not to give you a loan. These include your salary, the amount of your instalment debt compared to your income, how stable your job is, and how much money you have left over. If the total amount of debt you have each month is more than 30% of your gross income, it is likely that you will not be approved for a loan. If this happens, you might want to wait until you have paid off some debt before applying again.
When deciding how much money to ask for, think about any extras that aren't included in the price. Include these costs in the price of the boat, as well as the cost of extended service contracts for the engine and drive from the dealer and insurance. All of these things should be thought about when you want to get a boat loan.
