How to Apply For a Boat Loan
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.
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.
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