The process of finding good boat finance is a very challenging task. You will need to call loan brokers to give you rate quotes or drive around from one lender’s office to another. This process can be a bit easier if you fully understand how it all works.
A boat is a large purchase. You will be borrowing a large amount if you are planning to get boat finance. Doing so can be very risky especially if you get into a boat finance that charges you with high interest rate. You need to understand what you are setting yourself up to before you sign any paper. It is a smart idea to call loan brokers. They get commissions from a deal they close so they will make sure they find something that will be right for you. Moreover, calling different loan brokers will give you an idea as to the different boat finance rates currently playing in the boat finance industry. It is still better, however, to find out more about the other elements of boat finance.
How do you do this? You go and apply for pre-qualification for boat finance.
If you shopped around through a number of boat finance brokers, you might get into trouble by damaging your credit score. Remember that these boat finance brokers work with different lenders. Each inquiry you make with boat finance providers will lower your credit score. It is therefore not wise to apply carelessly to loan providers as it will lower your chances of getting pre-approved.
If you apply for boat finance through loan brokers, ask them first about their process. Ask how many boat finance firms they work for, are they able to match your boat finance application to the right lender, or are they just submitting your application to random boat finance firms?
How can pre-qualification help you?
1. It will help you find out what boat you can purchase with the loan.
2. You can make offers on the boat you want as if you have the cash ready. Your offer will be much more attractive than the offer of those who have yet to apply for boat finance.
3. Making an offer for a boat without being pre-qualified for boat finance may lead to devastation.