Before starting the boat financing process, it’s always best that you understand first how the process goes because it can be overwhelming to many. You might get confused when you call brokers for rate quotes.
Boat loans are no different with any large purchased that is financed where customers would want to get the best deal possible. This is why you should first understand what you’re getting into before you begin. It’s always best to ask different brokers first so you’d get a feel first how the market works. The process however has many unrevealed and unforeseen elements.
Without much information, you’ll find out that brokers can’t really provide accurate quotes. The indication that brokers provide is only based on a range of A+ interest rates provided that you qualify first.
It’s always difficult to get accurate quotes over the phone because brokers need to understand first your credit history, your current financial standing, and the nature of the purchase. You need to submit first a boat loan application via an underwriting process so the broker will know how you’ll qualify for a boat loan.
So this shows that it’s really not a good idea to call different brokers and not get solid answers. You actually only gain an idea of what A+ credit customers will qualify for and how great their deals are. So what people should do is to pre-qualify first for a boat loan instead of just inquiring over the phone, this is the smartest thing to do. Once pre-qualified, then is the perfect time to shop for a boat because you’ll know you have financing backup. Pre-qualifying allows you to know your financial structure and what exactly it is the type and price range of the boat that you can get.
Boat loan brokers will match you with a lender with the best interest rate for your financial capacity based on their multiple lending sources. Lenders usually have different sets of criteria and lend based on those. Customers are able to obtain the best market rate based on their current financial status with the help of brokers that match them with the right lender.
Borrowers should however be aware that their credit scores may be damaged if they shop with multiple brokers. Brokers that don’t have in house underwriting initiates the shopping process of your boat loan application by submitting to several lending sources hoping to score the best deal. Lenders may run a check on your credit history and this comes at a cost to customers. Inquiries reduce one’s credit score.
So when you go to a broker, you should ask about their process first. Find out if they underwrite their applications, do they just randomly shop your application to different lenders or do they match it to the appropriate one, and find out how many lending sources do they utilize.
It’s best if your professional broker underwrites your boat loan and submits it to the suitable lender for consideration. Be sure that this is the process that you’ll go for. The lender then approves the deal and your broker calls you for confirmation that the financing is available for you. You’re then on your way get the boat of your wildest dreams.