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Boat Loan Basics
Boat Loan Basics
Buying a Boat and need to know the basics about financing the purchase with a boat loan?

Financing a boat starts with finding a lender that makes boat loans, having a conversation, and starting an application. Finding a lender that makes boat loans is not a difficult task, now that banks have discovered that most boat buyers are excellent clients for loans. However, there are a bunch of good reasons to work with a Boat loan specialist who devotes funding and staff for the purpose, rather than approaching a lender directly. We interact deeply with the customer on the application, the credit side, analysis, underwriting, and thereby take out the sting that can come with doing financing business with a bank.

Financing can make Boating more accessible, which is why most boat buyers seek a Boat loan. A loan allows you to keep cash in your pocket and, in some cases, deduct interest expense on the Boat loan. Boat financing can make your life easy if you work with someone who understands the Boat loan process and can guide you through every step. Go with the best New & Used Boat Loans financing team. Trident Funding is the largest, independently owned, domestic boat loan company in the U.S.! 

What Information Do I Need to Secure a Boat Loan?

Before buying a Boat, check your credit history, verify your income and assess your budget: consider down payment, monthly loan payments, upkeep and repairs, and expenses such as insurance and gas. Gather all documentation needed, including a personal financial statement, credit report, and tax returns. In your first meeting with a boat loan specialist, a representative will be sure to collect all the information they need in the initial assessment.

Obviously, a high net worth appeals to lenders, and they will want to know that you’re not already overextended with other loans. Lenders want to see that you have managed loans of a similar size before. Lenders also look for liquid assets that will cover 12 to 16 months of payments. Steady employment and a primary residence are factored together by a lender as part of the candidate evaluation process.

A low rate on a boat loan is certainly seductive, but it is not the only factor to consider when securing financing. A Boat loan specialist can help you consider the big picture and factors that might affect your cost over the life of the loan, such as how long you intend to keep the Boat, what the terms are, and if there are any prepayment penalties. An experienced Boat loan Representative will make sure you don’t miss the small print!

The size of the down payment required will depend on the age, price, and type of vessel as well as on your credit profile. Expect to pay 15 to 20 percent down payment on most Center Console or Sportfishing Boats. A Boat loan specialist can help you with programs available through various manufacturers that could allow you to qualify for a lower down payment. They can also help you find lenders that offer lower interest rates for higher down payments.

New Boat loans can be processed and closed in a week, which is much faster and easier than real estate loans. Financing for pre-owned vessels takes longer. However, Boat Loan Specialists, working with Lenders who know the marine industry, can process paperwork faster, provide guidelines of all the things that are needed for a Boat purchase, and refer needed resources. They are, more knowledgeable, faster and easier to work with than a personal banker.