Guide to Financing Your Boat
It's fun and exciting to start shopping around for a new boat when you're ready to spend time exploring open waters and taking new adventures. Before you find the boat you want to purchase, you have to think about how you plan to finance it if you aren't going to pay cash. If you want to learn more about financing your boat, you can get more information from Portland Marine & Electronics in Clackamas, Oregon, serving Portland, Oregon, and Vancouver, Washington.
Get Pre-Approved
Start by getting pre-approved by a lender before you begin shopping around for a boat. This will allow you to determine how much you're approved for, which will make it easier to determine what you can afford. Getting pre-approved requires filling out a few forms and is a quick and easy process. You can present the pre-approval letter to the dealer once you make an offer on a boat.
Save for a Down Payment
It's important to save enough money to use as a down payment on the loan that you obtain to secure the financing and reduce what your monthly payment will be. The more money you put down, the more you will be able to qualify to borrow. Your down payment can also influence the interest rate through the bank or financial institution. Request a receipt for the down payment and understand the terms in advance. You also need to ask if the down payment can be refunded if you fail to secure the loan.
Use a Home Equity Loan
Many people who are looking to buy a boat opt for a home equity loan, which uses the house as collateral to obtain the financing. This requires paying for the appraisal and closing costs but is an option if you have equity in your home after several years of owning it.
Compare Interest Rates
Comparing interest rates between different banks and financial institutions can allow you to get the best loan and spend less on your monthly payment. Keep in mind that your credit score will influence the rate that you obtain, making it necessary to boost your score in advance. You can do this by paying off debt and minimizing your credit card usage. You also need to understand the differences between a fixed-rate and a fixed-term loan to ensure you can lock in the current rate long-term.
Do you want to learn more information about financing a new boat you want to purchase before you start to shop around for different models? You can learn from Portland Marine & Electronics in Clackamas, Oregon, serving Portland, Oregon, and Vancouver, Washington.