Boats and yachts have different purposes they serve. They could be just for pleasure (as in private comfort) or some business use. When you want to purchase a boat, you need to look at majorly what your finance is and what loans you can afford. Finance should be the first and top priority. The boats you would love to own come in different forms, varieties and options. You have varieties to choose from and this also means there are numerous finance packages to help your choices.
There are a number of ways to finance a boat whether it is a pleasure boat, commercial boat or whatever the function would be for you. As boat financing could be a bit confusing especially for a new potential buyer, you need to consult a boat finance specialist in order to save your time, money and energy. There are credible marine financiers which can give you the chance to check boat affordability, calculate your loans and offer several other services. On the other hand, it is necessary to keep the following tips in mind when considering financial options for your boat.
Before we talk about the points, do not forget that the bigger the boat, the bigger the probability of a financing challenge. Here is the first tip as advised by finance broker Fin lease about getting loans before shopping. He says “It’s a good idea to get your finance in place and obtain a pre-approval for your loan before you go shopping. We suggest putting in an application for a ‘hypothetical boat’ for a given sum of money. Once it is approved, you can confidentially negotiate on a boat knowing that the finance is ready to go. This should be a completely obligation free service, so if you eventually decide not to take up the finance, there is no charge.” This is unarguably really necessary. Like we said before, consult with appropriate authorities for loan calculation. It will be worth it if you employ the services of a specialist who understands the intricacies of boat financing.
Another tip for you is that you need to evaluate your needs. What kind of boat do you want? For how many years do you intend owning the boat or yacht? What are your plans for the boat? Will it be partly for commercial purposes or solely for pleasure? Again, when carrying out the evaluations, your financial broker should be aware and help you understand what your financial commitments will be, the security of your loans and other terms and conditions which could be applicable.
You should also keep this in mind that your options in financing your boat by loans should not be limited to just one lender who has been in charge of your home loan, car loan and other asset loans. In case of getting loans with your existing bank, there are greater probabilities that your bank might want to cross collateralise the boat loan against that of your home, car or any other asset. The truth still remains that when you partner with a specialist in boat financing, your boat will be able to serve as its own security, like a collateral, in most of the cases. Reports at several points reveal great pictures despite the tightness of the credit markets. This suggests that you will need a super tight means for funding security. At this point, your specialist will be a good advocate in presenting the case to a financier and this in turn, will help secure the funding you need.
When you get to this level, you can be sure that you are closer to actualizing your dreams. The lenders will look critically at some things when giving an approval for your loan. They want to know if you have a stable stream of income or if you are gainfully employed. They also want to see if your credit history is credible. Your ability to make your repayments according to your income is also considered. Plus, if you would get a hundred percent finance, you need to show that you have a substantial net worth in both properties or investments. Lenders want to be rest assured that you have the capacity to still have some worth if anything goes wrong so they do not want mortgage.
As soon as you have your loan approved, your funding is secure and paperwork’s are ready, be sure to pay attention to details. Be sure that you understand the loan structure and commitments for repaying. Check the interest rate if it is what you are thinking and if the boat is standing as its own security. It is necessary that you read all that is written in the print.
Since boat and yacht financing is a great area of interest for the mhf team, you can guarantee knowledgeable and excellence in finance brokerage. The team will assist in making your finance arrangements easy right from application to the very end of approval.