Budget constraints have suppressed many a sailor’s dreams. Cheap boat finance however offer reprieve in such cases. The large number of banks and other lenders in today’s market has made getting boat loans a less complicated affair. Before you can get a suitable finance deal you have to be adequately prepared. First, check your credit rating. Several things affect your credit ratings. These include the size of your debt currently, instances of default and ability to pay. If you have already accumulated a large amount of debt you credit rating will be low. A history of not paying what you owe also makes you a credit risk. You should also have a revenue stream. Boat finance will need proof of your income. W2s, paycheck stubs and business tax returns will do nicely. Of course you need to carry your identification documents and the boats purchase agreement.
Before most lenders give you a boat loan they will verify the value of the vessel. A licensed surveyor is usually called upon. The surveyor looks at similar vessels for sale to see if you are getting a raw deal. If the boat is overpriced the boat loan provider will not be able to recover all their money in case of default. Do not forget about interest rates .New boat finance also tends to attract lower interest rates. Used boat loans have higher rates. It would be harder to sell at the same price if you do not pay up. Interest rates vary between lenders so ask around before choosing a boat loans provider. You can use a boat loan calculator to determine the interest you will have to pay on a loan.
You could always get boat finance involved. Their job is basically to match you up with a suitable financing company. A boat loans broker helps you find appropriate marine credit options and picking one. A good brokerage will save you a lot of time and heartache. Be sure to use a specialized boat loans broker. This gives you a better chance of finding low interest rate boat loans. Marine credit brokers either get a commission from loan providers or charge you a fee. Some do both. Make sure you ask how your boat loans brokerage is getting paid. The cheaper option is not necessarily best. Paying the broker yourself limits conflict of interest. Also compare fees from different brokers.
You must always keep the following in mind when dealing with boat finance brokers:
· Make sure they are licensed. You can check government registries to make sure. There are several unscrupulous individuals in the boat loans brokerage business. Be careful when giving up information and money.
· Have a written agreement. It should specify what kind of boat loans you want. It also outlines any fees and commission the new boat financing brokerage gets. This is especially important in case of a disagreement.
· Know what you want. Create a list of what you expect from the broker. What payment arrangement would you prefer? How much money do you need? Be it a used boat loan or new boat financing interest takes center stage. Low interest rates should top your list.
· Avoid shot gunning. This is giving your loan application to several boat loan providers. Every decline reduces your credit rating. Dealing with a specialized broker who has a large portfolio of lenders is the best way to avoid this.
· Ask. Make sure you understand whatever boat loan packages are presented to you. Ask about any details you are not sure of. If something goes wrong complain. Buyer’s remorse is the last thing you want.
· Do your own research. Stay in the know. This helps you to engage meaningfully with the broker when discussing what you want.
· Do not get pressured into a policy you do not like. If you are not comfortable say no and stick to it.sssssss