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| 7 Ways to Improve your Chances to Qualify for a Yacht Loan |
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| Written by Bob Denison |
| Monday, 09 November 2009 10:56 |
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1.Getting a boat loan, used to be a bit easier than it is right now, however if you follow the tips in this list you should increase your chances to get a loan and be able to afford that boat. 1. Run your credit, with all three agencies. As Equifax, Experian, and Transunion may all come up with different results. You want to check to make sure that all the information is correct and that you opened every account that appears. If you find one that you didn't open, you will need to submit forms to all three to dispute the creation of the accounts or the charges. 2. Focus on your FICO score, which is the measurement of your financial stability and your ability to repay the loan. You can improve your score by paying down debt, having accounts with zero balances, and always paying your bills on time. 3. Increase the amount that you put down on the loan. By showing that the bank will not be the only one who will commit financially to the loan, you are able to show them that you are more likely to repay it. 20% or more is best. 4. Know your history. A bank will look at your credit score, and commitment to the loan by looking at the amount of your down payment, but they will also consider the rest of your history, including employment history, loan payment history, cash reserves, and the size of any previous loans. Banks hardly lend a significantly larger loan than the other loans you may have had in the past. 5. Get ready to prove your financial position. Because a yacht loan lender might end up owning your boat (if you default), they will want to know that you have the income to not only pay back the loan, but also take care of the boat, including maintenance and insurance. You will need to provide proof of YTD earnings, two years of tax returns, and a listing of all investments (including retirement accounts). 6. Know the ratios banks use to pre-qualify individuals. All monthly operating expenses and all debt payments (including mortgage and car payments) should not exceed your 40% of your household's monthly income. 7. Find a broker that you can trust and who has good relationships with banks. Having more than one agent or broker does not help you get a better loan, as most brokers can deal with all the banks that provide yacht loans (there are only a few). The main criteria you should use when determining a boat loan broker is your ability to trust them and their relationship with the banks. About the Author: Now is a great time to buy a boat. There are great opportunities to purchase boats at that represent an great value, or may have been previously unaffordable. Take the time to prepare in advance, get "pre-qualified" for a boat loan so you know that boat financing will not affect your negotiations or timetable to purchase. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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