This is not the case today, what most people are stressing about is deciding which lender to go with. When many lenders in the market made a discovery that boat clients and borrowers were great clients especially when it comes to loans, they began adding express cruiser loans into their offerings. However, even with an increase in the number of lenders who are providing this type of loan, it is still advisable for you to make sure that you do all the research that is needed before you start making any final decisions.
Comparing Express Cruiser Loans
As you may already know, it is always a good idea for you to first compare the different terms and rates that are been offered by the various sources of express cruiser loans available. It is important for you to ensure that you go for an option that is going to be best suited for your intended purpose. The various lenders include the following:
Companies that provide financial service
The good thing about companies that provide financial services is that they are able to maintain good relationships with regional, local as well as national lenders. This is highly beneficial because it is able to give them proper access to various financial programs. Most of these companies are known to be great lenders in the marine field. You should be able to see different advertisements as well as boating publications. You can call them for terms and rates so that you can be able to have a good idea of what exactly you should anticipate when you start the application process. You will also have an idea of what exactly you should expect when it comes to funding time.
The very first place for you to start out when you are looking for express cruiser loans is your very own bank. You could also go ahead and have a look at their website so that you can be able to find out if they do any kind of boat financing. While you are at it, make sure that you make an inquiry about the different rates that they have as well as the different terms that they have. Also, find out how long the loan is going to take. There are some banks that make advertisements in boating publications and magazines as mentioned earlier. All you need to do is to contact them or respond to an advertisement that you see so that you get to find out what they are going to be offering you with.
If you are in a credit union that also provides express cruiser loans, then it is also a good idea for you to get into contact with them. This is because they tend to have highly attractive rates for members of their unions. Therefore, if you are interested in getting a boat loan, you should be able to benefit from this. Another plus is if they have a specialist in their staffs who specifically deals with marine lending. This is because they are going to be in a much better position to provide you with competitive loan rates.
Steps To Take When Shopping For Express Cruiser Loans
Regardless of the manner in which you decide to finance your used or new boat, it is crucial for you to ensure that you are going to be getting express cruiser loans that are going to work well with you. Always make sure that the terms that you are been provided with are also going to be beneficial and useful to you. The steps that you need to follow include;
- Have a look at your credit
Depending on the credit situation that you are in, you may end up been limited in regards to the loan options you may be able to get. This is why it is very important for you to ensure that you first start out by having a look at your credit score so that you have an idea of where exactly you stand. Different lenders vary in regards to the credit score standards that they make use of. However, if you have a credit score that is at 700 or an amount that is higher than this, then this is considered to be fairly good.
If you have a credit score that is poor, then it would be better if you would have a look at your report so that you are able to understand what exactly is affecting your credit score. Also, make sure that you check to see if there are any errors that you can go ahead and dispute. The best way to go about it is to have a talk with the lender that you are looking at so that you can know the different standards that they go with and find out if you qualify or not.
- Make sure that you are prequalified before you start doing any shopping
Before you start shopping for a boat, make sure that you first apply for your express cruiser loans and that you are prequalified for it.The entire process of buying a boat should be easy and smooth for you if you know who is going to be financing the purchase that you are about to make. Just like the other type of loans that are available in the market, you should be able to apply for the prequalification of your boat loan. Also, because this kind of prequalification only requires that you have soft credit checks on your account, it is not in any way going to end up hurting the current credit score that you have.
Once you get prequalified, it is going to be much easier for you to pick a lender who has the best possible terms. You should also be in a better position to determine if the boat dealer you are also looking at is providing you with financing terms that are competitive.
- Make sure that you pay all your debt
On top of making sure that you have a look at your credit together with many other factors, lenders also tend to check on your debt to your income ratio. This is normally done so that they can be able to determine if your application can be approved. The number of this ratio is normally reached by simply dividing the total financial obligations you have on a monthly basis by the gross income you get monthly. When you ensure that all existing debts have been paid and cleared, this is going to ensure that your DTI is decreased and is also going to improve the likelihood of you been approved for the loan. On top of this, when you pay off all your other debts, you are going to be freeing up funds that may come in handy especially when you are trying to raise funds to make a down payment.
- Applications and finance negotiations
Make sure that you gather all the necessary documentation that you are going to need for the loan processing. This is going to include your credit report, financial personal statements, and your tax returns. Make sure that you are meticulous when it comes to this. If you are looking to improve your financing options, then it is always advisable for you to get a pre-approval letter first as mentioned above. This is a way in which you are able to show that you really are serious when it comes to the buying of the boat.
As you are looking for the best possible option for your express cruiser loans, make sure that you go for the lowest term but one that is still going to be beneficial to you. Doing so ensures that you are going to go for an option that will give you a monthly option that is going to work well with the budget that you have. It is better to go for a fixed rate option compared to variable rate options because they have been found to be less risky. If you still decide to go for variable rates, then it is important for you to make sure that you have a look at the years that have been indicated. You also need to keep in mind that you are going to need what is known as a Manufacturer statement of origin (MSO) if you are buying a new boat. This is normally needed so that you are able to register the boat as well as insure it. Your lender or you should receive the MSO. During this process, it is also important for you to ensure that you make a calculation of the costs that you will be expected to pay for the boat loan on a monthly basis.When you make these calculations, make sure that you also include payments for its storage, the insurance costs as well as the cost that you are going to be spending on its maintenance.
Final Thoughts On Express Cruiser Loans
When it comes to express cruiser loans and this kind of financing, the whole process may turn out to be very stressful. This is especially the case if you have no idea of what exactly needs to be done. An important point is that because this is a huge financial commitment that you are making, it is critical for you to spare some time to do proper research. Doing so is one of the surest ways in which you will be able to ensure that you do not end up paying way much more especially when it comes to fees and interests. It is also important for you to do your research and find out if you can actually be able to pay for the monthly payments that tend to come with the loan.
As you make a review of each of the financing options that are available, make sure that you know exactly what it is you are getting yourself into before settling. Our team at J.J. Best Bank & Co. can help you out.