If you have some experience when it comes to buying a car as well as the process that is usually involved when it comes to getting a loan for it, then you are probably on the right track. One of the best things that come with the buying of a boat is the fact that the entire boat community has been found to be very welcoming, inclusive and friendly. This means that you are always going to have a good time.
With all the above in mind, the first thing that needs to be discussed are the steps that need to be followed when it comes to the buying of flybridge motor yacht loans. The most important things that you should never miss looking at include the terms been offered, the fees that you are going to be expected to ay as well as the terms.
How To Start The Flybridge Motor Yacht Loans Process?
The very first place that you need to begin at is collecting all the information that you need when it comes to yacht loans. What most people do not know is that boat loans are so much similar to mortgages and car loans. For you to get a suitable option, then it is important for you to do some shopping around. By shopping around, you will also get to see what is been offered in the market which is also going to help you decide if these are the terms that you are comfortable working with.
Banks tend to provide these types of loans which is why the best place for you to start asking around would be in your own bank. The only thing that is going to be required from you as a buyer is to provide all the information that is needed that is going to be used to prove your financial stability. Some of the documentation that will be needed includes the following:
- Your personal tax returns for at least 2 years
- Your income statements which are also going to apply if you are self-employed
- A proof of your assets which also includes your liquid assets
- Your credit score which your lender is also going to run
Before the financing of your boat can begin, the lender is going to start out by discussing your loan to your value guideline which is going to be based on the book value when it comes to used boats and contracts price when it comes to new boats. You also need to keep in mind that when it comes to flybridge motor yacht loans, the requirements needed have been found to be more stringent compared to car loans. This is why it is so much better for you to start considering getting a pre-approval first before you even start out with the shopping process.
How does one calculate their yacht value?
Once you get your pre-approval for your flybridge motor yacht loans, you can start shopping for either a used or a new boat depending on the budget that you have. Always make sure that you stick to a budget that is going to suit and fit your needs. There are a number of ways in which you can be able to calculate the price of the boat that you are thinking of buying. They include:
Make use of what is known as the tool for boat trader price checker
Making use of this tool is going to give you an estimate of the boat you are planning on purchasing blue book value. This is going to give you a helpful benchmark that you can make use of for all the research and boat shopping that you are going to be going through.
Consider the condition
When it comes to the condition of the yacht, you need to understand that this is usually an approach that is three-factored. What this means is that it’s cosmetic, mechanical and its electronic condition is going to be looked at.
Make sure that you have a proper understanding of the market
It is important for you to start out by understanding the market by making a search of yachts that are on sale. When you are carrying out your search, it is important for you to make your search based on brand, model, condition and size. The best possible way in which you can be able to determine the market value is by taking the time to know the market first.
If during your search you find a boat that you like and would like to purchase, then you should go ahead and contact the boat surveyor. If you are looking into a new yacht or a larger one, then it would be better to make a consideration of the services that are been offered by the yacht surveyor. Doing so is important so that you are able to ensure that you are going to be getting the correct value especially when it comes to paying of tax.
Understanding Flybridge Motor Yacht Loans Rates
When you look at standard interest rates for flybridge motor yacht loans, you will find that they lie between 4% and 7%. The interest rate for your Yacht loan is usually determined by the credit rating that you have as well as the agreed loan term. In general, if the repayment term is long, then the interest rate is also going to be higher. This should also tell you that the more the amount borrowed, the lower you’re the amount you will get in interest rate. This is mainly because you are going to have a larger amount to repay. You could also make use of a tool known as a financing calculator that comes in handy especially when it comes to estimating your boat payments.
Working with yacht brokers
If you have settled on finding a brand new yacht or even if it is a used one, then it would be a good idea for you to start shopping around for a certified yacht broker to work with. Going for this option ensures that the whole entire process is going to turn out to be a smooth and trouble-free one for you. This is also a known carefree way in which you can be able to make a purchase of a boat. The most important thing to do is to make sure that you go for a broker who has created a good name for themselves and are known to be good at what they do. They also need to have a good relationship with different institutions making the negotiations much easier.
The Choices For Flybridge Motor Yacht Loans
Just like you would find in real estate, you will also find that there are different types of loan options available for you to make use of when it comes to financing your yacht purchase. A lender is required to be able to properly explain in full the details of any loan type that they are providing their customers with. As you try to make choices, it is advisable to ensure that you ask all the necessary questions and also ensure that you go for an option that is going to suit the profile that you have.
- The most common and suitable option is a fixed term or fixed rate interest loan. This is because it is one of the options that tend to maintain the exact kind of monthly payments throughout the entire period off the loan. By the time the loan period is over, the borrower is going to have paid off the interest rate that is needed as well as all the principal obligations that came with the loan.
- Variable rates. These types of loans tend to float based on indexes of the different interest rates. They tend to come with introductory rates that are much lower. However, an important point that you need to understand is that these types of loans tend to change on a daily basis. If this is not the case, then there is going to be a present point later on where there is going to be a change. It is therefore advisable for borrowers to have a careful look at adjustable periods as well as other details so that they can be able to clearly understand how these said payments are bound to change. On top of this, they should be able to anticipate how exactly they will be able to manage them.
- Balloon payment. This is the type whereby borrowers are required to pay an entire balance at the very end of their stated term. Most borrowers tend to choose the ‘balloon’ option since they are sure that they are only going to own the boat for a given period of time for example 3 years. With this, they are going to make the necessary preparations to pay off the loan at the time that has been agreed upon.
The application process
There are those lenders who are going to require you to have an application that has been fully written. There are those who may take you through the whole application process via the phone. This is going to depend highly on the amount of the flybridge motor yacht loans that you are taking. The more you will want to the borrower, the more details you will be expected to provide. When there is a requirement of income verification, depending on the amount of loan you are applying for, you are going to be expected to provide your tax returns copies for not less than 2 years. Depending on your lender, you may be asked to provide them with your personal financial statements which are simply a snapshot of your liabilities and your assets that basically show your net worth. All of the information that is asked of you is important since this is what is going to be used to provide you with the most suitable loan option. Contact us at J.J. Best Bank & Co. today!