Most people say that sailing is one of the best hobbies one can do but of course you need a good quality boat in order to this hobby. Boats for sailing or just boats in general are not exactly sold cheap. However, it is possible to get one through boat loans.
Nowadays, it’s not that easy to get a boat loan as most lenders don’t easily lend to such luxury items. Nonetheless, getting a boat loan is not impossible. There are some other important factors you should consider before getting the loan besides the boat loan interest rates.
Your credit score is the most vital factor in getting a boat loan. Prior to applying for the loan, make sure you check your credit rating and make corrections the soonest if there are any errors. A credit score at least low 700s should be your goal. Make sure to tidy up your credit report if possible- make sure to increase your credit limits if you can, in that way, your debt/credit ratio is below 50% on each of your credit cards thus increasing your credit score. Having a good to excellent credit score not only likely gets you the loan but as well as it might help get you great boat loan interest rates.
Trust Your Broker
Find a broker/lender you trust and stick with them if you can- it only seems fair to give commissions if they are doing most of the work. Nonetheless, make sure to let them know that you are aware of competitor’s rates and expect them to meet within those rates.
Type of Boat
It is important that the lender knows the type of boat you are buying. Lenders are not easily giving loans to sailors but with an excellent credit and valid documents to back you up, as well as a good broker, there shouldn’t be much fuss to trouble with.