When you want to buy a boat with a loan or on a lease, there are certain predispositions that have to be met, in order for a financial institution to accept your application for a loan or a lease. Therefore, there are certain things that you have to check before approaching a loan provider, and make some arrangements, in order to have better eligibility for the loan.
Before approaching the loan provider:
First you have to set the amount of money you want to borrow. This amount has to be realistic and in accordance with your savings up to that point and your monthly salary. Then try to find a boat that will suit your needs, in accordance to the amount of money you are loaning.
Getting A Boat Loan
When asking for a lease, it is better to ask for the lease of a new, or a near new boat, since they can be used as a better security for the lease. Older boats, as all used things, have lower resale values, and thus are not as good for securing a lease, because their prices drop more rapidly.
It is also preferable if you have enjoyed a long and stable employment. If you can provide the financial institution with the proof that you have not been out of work for a long time, it will be a signal for them that you can be depended upon when the time comes for paying the monthly installments. If they can be sure that you will be earning your salary for a long time, then they will be glad to give you the loan, as you won’t be a problem later.
Your bank account and your salary play the major role in providing proof for the payment of the loan. If you can, you should show the loan provider a savings account record, and your bank account record, so that he can see how regular, and how big are your incomes. This way they can also help you to correct your price, if it is advisable.
Also, it is advisable to check your credit ranking and your credit file. The credit file is a history of your credit obligations that is available with your previous creditors, and also shows how you handled those obligations, whether you paid the installments in time, etc. It is a kind of a financial credit dossier that has all of your crediting information. According to your credit file, you are given a credit ranking, which will tell the loan providers how dependable you are considered for a new loan. The better the credit rankings, the better the interest rates, and the larger the amount of money you can borrow.
If you are taking a loan for the first time, it is also advisable to consider using a guarantor to secure the loan you are asking for. A guarantor is a person who will undersign the loan agreement and agree to pay off the debt, if the borrower is not able to meet the payments in time. This is not required for the first time borrowers, but it is advisable, since it will provide the security for the financial institution that they will not lose the money invested when they have no idea how you act on the financial market.
When shopping for loans:
The first thing to always remember when out looking for a good loan is that you can bargain for it. The finance is an industry just like any other, and competitiveness in securing new customers is the same as everywhere else. So, cutting you a better deal than the other creditors is in their interest, as they will secure profit for themselves. They should be the ones fighting to secure you get a loan from them, and not vice versa.
Another important thing to remember is that many banks and other loan providers offer low rates, but they don’t mention the ongoing fees and other maintenance costs that can amount to much larger monthly installments than the ones you were hoping for. Basically, this is a way for the loan providers to account for the low interest rates, as the amount received every month is the same as it would be with regular interest rates.
With these basic guidelines, you can approach the loan provider safely and without the fear of getting scammed or getting dissatisfactory loans.