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1.Getting a boat loan, used to be a bit easier than it is right now, however if you follow the tips in this list you should increase your chances to get a loan and be able to afford that boat.

2. Know what’s on your credit report. If you find any accounts that you did not open or any amounts that you did not charge, you will need to submit a form to all three credit reporting agencies (Equifax, Experian, and Transunion) to dispute the account or charges, as need be. Each reporting agency may give a different result and may find different accounts. A bank will run all three and so should you.

2. Improve your FICO score. Your FICO score measures you financial stability. You can improve your score by not using all of your credit space, and especially by having zero balance credit cards, paying your bills on time, and reducing the amount of debt you carry.

3. Put some “skin in the game.” Lenders like to see that you have financial motivation to keep from defaulting on the loan. By putting down 20%, the bank sees that you have a motivation to keep repaying the loan, and if you are able to put down more than 20% many times lenders will be able to give you better terms.

4. Banks take more than just credit score and income into the criteria they use to assess risk. Previous boat loan experience is a positive, or at least comparable borrowing experience. They will also look into your employment history, previous payment history, and cash reserves.

5. Gather your financial documents. In order to qualify for a loan, a lender will want to verify that you have the means to both pay back the loan and take care of the boat, including maintenance, insurance, dockage, and fuel, while you own it. In order to prove your financial status, you will need to provide the lender with two years of tax returns, current year to date income, and a balance sheet of current investments, cash, stocks, annuities, IRA’s, 401k’s, etc. Also, remember that many lenders will require you to insure the boat until you have paid off the loan, even if your state does not require insurance.

6. Understand how bank look at your debt and income. A bank will want to see that your monthly debt payments are not greater than 40% of your monthly earnings.

7. Find the right company to represent you. Only a few lending institutions provide boat loans, and most independent brokers will request a loan quote with each of them. This means that having two agents will not help you (and can often hurt your chances of getting a good loan). It is important that you select an agent or brokerage that has a long history of dealing with yacht loan lenders and a good track record of successful loans. Remember, a good broker is your advocate.

Now is a great time to buy a yacht. There are great opportunities to purchase yachts at that represent an exceptional value, or may have been previously unaffordable. Take the time to gather your documents, get “pre-qualified” for a yacht loan so you know that financing will not affect your negotiations or timetable to purchase.

categories: boat loan,yacht loan,financing,lending,boat,boats,boating,business,lending,faincing,banking

Tags: Banking, boat, boat loan, boating, boats, business, faincing, Financing, lending, yacht loan