The seller will have some documents to sign (and if they need to bring additional cash for closing, it will need to be in certified funds or a wire). Once your loan has been fully approved and cleared for closing, its time to sign the documents. Sign Documents and Provide Down Payment Funds (may require a notary).Things that can delay the closing is not providing requested documents, the sellers lender not providing the complete payoff or a delay in surveying. In some cases, it could take a week or longer if issues come up. Getting to this point can take a few days from application if all documentation is provided in a timely manner. Process Closing Paperwork for Buyer & Seller.If the seller owes more than the sales price, they will be required to bring funds to the closing. When buying a used boat from a private seller that has an outstanding loan balance, your lender will need an up to date payoff prior to giving final approval to create the documents for your purchase and loan. Request Outstanding Loan Payoff (if no clear title).If there is a lien on the boat, they will want to verify that information with the seller’s lender. Surveys are typically $20 to $25 per foot. This is more typical on larger loan amounts and larger vessels. They may also request a photo or personal inspection of the boat and serial numbers prior to funding the loan.Īt times, a lender may require a survey of the vessel. The lender will also require copies of the titles for the boat, motor(s) and trailer to confirm all serial numbers. If credit is not perfect, the down payment amount will be 20% or more. (check out the magic money saving method to avoid paying too much for your boat) This typically falls in line of 10% down with excellent credit and a well negotiated sales price. The lender will determine the value of the boat for lending purposes and will set their maximum loan amount accordingly. ![]() ![]() ![]() Specifically, year, make, model and options of each. When buying a used boat from a private seller, the lender will want to verify information about the boat, motor and trailer. Get Collateral Approved (Boat, Motor & Trailer).If financing over $500,000, they may also require proof of assets. If self-employed, they may require tax returns. Often, the lender will ask for proof of income via pay stubs and possibly w-2s. They will check your gross income vs your total monthly debt payments (including rent/mortgage, credit card minimum payments, car payment, etc). They will typically require a credit score over 680, however some lenders offer loans to 580 credit scores with larger down payments.Īnother portion of the credit approval process is checking your debt to income ratio with the new loan payment. Getting credit approval is all about if you and your financial situation qualify for the loan. Get Credit Approval (income and credit score).Process of Getting a Used Boat Loan (Private Seller): Keep reading and you’ll discover some insider information that will help you save money and avoid major headaches.īecause most used boats are bought from private sellers and these loans can be slightly tougher, we’ll start there. ![]() The process of getting a boat loan varies when buying from a boat dealer or private seller. Interest rates range from 5.49% to 18% depending on credit, age of vessel and down payment and change based on market conditions. It will help you get the best boat loan, understand exactly how they work and how to avoid the mistakes others have made that cause delays and stress.īoat loans are secured by the boat, motor and trailer and require a 10% down payment with terms from 7 to 20 years depending on the amount financed. I’ll share what I discovered while helping hundreds of people buying used boats. So, how boat loans work? What down payments are? How long with they extend the payments? What credit score do I need? What if you’re buying from a private seller or boat dealer? When considering buying a used boat, one of the first questions that comes up is, what if I was going to finance this boat.
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