Like any other loan, finding the best boat loan involves research, and comparison shopping. Just like car loans, recreational vehicle (RV) loans, and even home loans, boat loans are a matter of research, reading the fine print, and having a good credit score.
One of the first steps toward finding the best boat loan is to determine current interest rates for such loans. The Internet is, obviously, an invaluable asset when beginning the search for a loan. It’s fairly simple to examine various lending institutions online, to find out their interest rates for boat loans.
Some institutions require an application to get interest rate information, and some will post it on their website. Generally, the lowest interest rates on a boat loan will be quoted on the assumption that the applicant has nearly perfect credit. Good credit is essential to finding the best rate for the loan.
Fees are another thing to consider when shopping for a boat loan. Generally, these fees will be quoted up front by the lending agent. If not, chances are, this is not the best place to get a loan. Finding lenders offering reasonable fees and a low interest rate will certainly be a step in the right direction.
Next, determine the cost, as well as the value, of the boat. If applying for a pre-approved boat loan without a particular boat in mind, determine a price that you are comfortable with. It’s not worth the effort if the boat under consideration is unaffordable, either with, or without a loan.
The term of the loan, the length of time it will take to pay the loan is the next factor in the decision to apply. As a rule, the shorter the terms, the higher the monthly payments will be. However, the shorter the term of the loan, the quicker that equity, or worth, is built up in the boat when it is time to sell.
Most lending websites will have a finance calculator where the above information can be entered. Complete the information in the finance calculators from several lending sites, and then decide from the results of the calculations which lenders offer the best rates and terms. Apply to a number of them, and determine the best deal.
Be aware when applying for a boat loan –- or any other kind of loan –- that proof of income, or worth, will be required by the lender. This proof of income will usually be satisfied by presentation of pay stubs, income tax documents, and/or a bank statement indicating net worth.