Though their prices are pocket-friendly compared to larger recreational vessels like hovercrafts, hydrofoils, and yachts, this doesn’t mean that you’ll get one with the amount you can use to buy peanuts. You have to dig deep into the pocket. The modal price of a bowrider is something to do with $30,000. Now, what do you do if you have a burning craving for one and you don’t have the cash in hand? (neither in the bank). This is no longer a nightmare with the introduction of numerous lenders who are ready to give out loans for the purchase of boat boats or just to service your bought which you had already bought and is still too dear to you to dispose of. Numerous loan options are available in the market with varying terms. So, it is upon the buyer to navigate through the web and compare the available options so as to come up with what suits him or her best. But this search is not a walk the park given loads of information available over the net to search from. This article will give you an overview of almost everything you need to know about the bowrider loans.
Where Do You Get A Bowrider Loan?
There are several lenders which can help you fulfill your dream of being a bowrider owner. You need to carefully compare their terms to enable you to have all your needs taken care of. Even though all borrowers like you have one need in common, (need for financial assistance), they have very many other needs which differ from one to another. For example, one borrower may be having an urgent need for cash while another may be having a great fear of repaying loans with big interests. The former will have no option apart from looking for a financer who can approve his\her a loan within the shortest time possible and won’t be so much bothered about interest rates. For the latter, even if the approval will take a week and the application form plus all necessary documents form a booklet, he won’t get so much worried as his ultimate goal is to be charged a minimum interest rate. So, with a wide range of borrowers’ needs, it is almost impossible to say which lender is the best. But for an individual borrower, you can do your own comparisons to know which lender best fits your needs. Here is a list of possible lenders you can get bowrider loans from.
There are some boat dealers who alongside selling boats, accessories and helping their customers in having their boats repaired if any damage occurs before the expiry of the warranty period, also help their customers in financing their boat. Such lenders have an advantage in that they can answer all your questions as far as boating is concerned as their only business is boating unlike other options who give loans to all lenders and their core business is financing. Such lenders include ‘Quality boats of Clearwater Inc’
Banks are by far the most popular financial institutions. The only disadvantage of a bank is that they cannot give individual borrowers individual attention as they deal with many clients. Their interest rates are among the highest but they have an advantage that they are reliable. You only need security and what you are going to do with the money is not a very big deal to them.
If you happen to be a member of a credit union that alongside other benefits provides loans for boats, then they can be one of the best lenders to approach with your request for a bowrider loan. They have an advantage over the banks as they only specialize in only marine lending making them able to give their individual borrowers special attention.
Companies providing financial services
There are several companies that provide financial services for lenders with various needs. They also have the same advantage which credit unions have over the banks. Another added advantage with these companies is that they have good customer services and they maintain good relations with their clients and they are also handling your problems as their own as they help you solve them.
If you are a member of any SACCO, you can borrow from them and they won’t be so much interested in what you are going to do with the money.
How your interest will be determined.
The main determinant of a borrower’s interest is the amount applied for and the cost of the boat you’re buying. Besides the major factors, these are factors that may be considered before your interest valued.
Borrower’s ability to repay the loan
Any lender will be more willing to give a loan to a creditworthy borrower. The more creditworthy you are, the less hesitant a lender will be to give you a loan. This will be determined by your credit score. When your credit score is appealing, your interest will also be more bearable. If you are a borrower with a poor credit score, you will have quite shocking rates.
Debt to income ratio
This is also a major determinant of the interest rate. It shows the proportion of the borrower’s income which he or she will use to finance the loan repayment. When it is low, the lender will be confident that the borrower is in a position to repay the loan with ease and this will be advantageous to the borrower as the interest will be low. If it is high, the lender will be hesitant and will hence charge interest. If it is too high, say; 0.4 and above, the borrower may be declared uncreditworthy and hence be disqualified from the loan
The deposit you pay for a bowrider will also determine interest. Most lenders charge a flat down payment of 10% of the overall price. But when you pay a higher down payment, then it will have catered for much of what is to be paid and the interest will tend to be lower.
Advantages Of Taking Bowrider Loans
When you take a loan for your bowrider, whether to buy a new or maintain an existing one, it is still a bowrider loan despite who the lender is. But in this section, if we include advantages of loans from general lenders like banks, then it won’t be advantages of bowrider loans but the advantages of taking a loan which is not our subject matter. So, we’ll only at benefits of taking bowrider loans from a borrower who is giving you the loan specifically for a bowrider.
The loans are easy to apply for
With some lenders, you can apply for the loans through your mobile phone, using your fax or you can go in person but after your income has been verified, be rest assured that the application process will take you at most ten minutes. Also worthy of note is that the income verification is only applicable to loans exceeding $100000.
Pocket-friendly closing costs
Compared to general bank loans, bowrider loans have relatively low closing costs.
Wide range of term to choose from
If you’re a borrower whose income is steady and you cannot predict your future income with certainty, then you may need to avoid short term loans. For a salaried borrower who is certain with his income, he may require to take short term loan (if he is in a position to repay it in time) to avoid big interests which come with long term loans. Bowrider loan providers give a wide range of options to choose from and not only in terms of loan term but also other options too.
Before your rare is determined, they will consider the period of time your boat has been in service the amount of down payment you are in a position to pay, and your credit score. They will then come up with a rate that they feel will not burden the majority of their clients. But all in all, the rates are generally low.
The fees charged for bowrider loans just like other boats are generally pocket-friendly. The fees include registration fees and costs for documentation. The fees may be included in the loan interest or you may opt to pay them separately if you are in a position to.
No pre-payment penalties
Most lenders don’t charge pre-payment penalties. Doesn’t that sound amazing?
State registration and titling are handled for you
Once your loan gets been approved, the loan provider will do for you the registration and titling and send for you the title to the bank.
Steps In Applying For A Bowrider Loan
Once you’ve made your mind to acquire your bowrider or to service an existing one through a loan, there are some factors you need to bear in mind before you go ahead to take the loan or else, you may rush then end up in a very unpleasant situation like bankruptcy or some situation of that sort. Below are some of the steps you should follow in the process of sourcing your bowrider loans.
Check your credit score
A credit score is a major factor and it will be hard to find a lender who will give a loan to a borrower before having a look at his or her credit score. A credit score that stands at 700 or higher value is acceptable with many lenders apart from those who are too strict or if the borrower is applying for a bigger loan. If your credit score is not encouraging, then it is advisable to check your report so that you can get to know what exactly is pulling down your score. Don’t forget if at all there might be an error which can be corrected. After setting right your credit score, you can contact the lender whose services you want to use so that you can to know their minimums.
Make sure you are qualified for the loan before you contact the lender
You can check the lender’s requirements in terms of age, residence, income, etc. It will be a waste of time to go to a lender whose minimum salary requirement for a borrower is four times your current salary.
After you have made sure you meet all the requirements, then you can go ahead to apply for the loan by sending all the requirements so that the lender too may confirm your qualification. After your qualification is confirmed, the process of acquiring your loan will be a walk in the park. It will just be upon you to go for the option that suits you most.
Start repaying your loan
Depending on the terms of the agreement, start repaying the loan to avoid being overburdened. If you agreed to repay in monthly installments after a given grace period, do exactly that. If the lender just wants the loan repaid in full before the expiry of the loan term without minding how it is repaid, it is advisable to start paying on it early enough to avoid it piling up.
The best way to apply for a bowrider loan
With digitalization in almost every sector, whenever you find yourself in a situation where you have two options to use in performing a task; which is, either to do it manually or perform it using technology, go for tech. it is convenient, time-saving and less costly. Like in applying for a bowrider loan, you have the option of going to the lender physically or to do it online. The online application will be advantageous because you can browse through the websites of all potential lenders, compare their terms and weigh them to determine which one best fits your needs at the comfort of your home. Once you have settled on a lender, go ahead to the application after making sure you are legible and wait for the response. Another advantage of online application is that you get to make comparisons when you are alone. When you visit the potential lender in person, the sales assistant may influence you until you end up resorting to just apply for the loan only to discover later that you left another potential lender with better terms.
Factors to consider when choosing a lender
If you are a buyer who needs a bowrider urgently, then you’ll definitely need a lender who will approve your application quickly. Most lenders who specialize in marine lending are always swift and you will have your loans approved in less than a day and after approval, the boat or the loan will be at your disposal.
The repayment period
As discussed earlier, a borrower who is certain about his future income won’t have any need for a long term loan if his\her income can repay the loan without him\her feeling the burden. But for a borrower who is not sure with his future income, he will be best suited for a long term loan. So, look for a lender which best fits you.
The schedule of repayment
There are two options here, fixed schedule and variable schedule. In the former, you have to repay a given installment after a fixed period of time, always a month. While the latter, the lender just wants you to have cleared the loan before the expiry of the repayment period. So, depending on your income schedule, you can choose one which best suits you. But bear in mind that finding a lender offering the variable option is not quite easy.
The maximum amount you can borrow
Go for a lender who gives amount which can cater for all your needs.
Recreational water sporting is quite an enjoyable holiday activity. For long, this has been a reserve of the haves, but with the introduction of several boat loans in the market, that has ceased to be the case. In the past, if we’re not well off, then recreational water sports were not for you or if you had to do it, it had to be on a friend’s vessel or you would be charged a fee for a vessel. Though using someone’s recreational vessel for a fee is still common, especially for those who don’t reside at the coast and would consider it a waste to buy a water vessel which they won’t have opportunity to use every day, having your own vessel is still amazing and alongside recreation, you can use it to earn money by giving tourists rides at a fee. But as discussed in the beginning, money for buying peanuts cannot be used to bargain the price of a bowrider; it has to cost you to acquire one. But, why face the burden head-on when there are options of acquiring the vessel with ease without feeling the weight of the burden? With J.J. Best Banc & Co. is a sound and worthwhile investment.