How to Improve your Chances to Get a Yacht Loan

1.Two years ago getting a boat loan was substantially easier than it now however is is not impossible to get one now. Following these seven tips should increase your chances at qualifying & getting your dream yacht.

2. Check your credit score with all three agencies Equifax Experian & Transunion Each agency will give you a different score & may even find different accounts . It is important that you run each one & check for accounts that you did not open or charges that you did not generate. If you find any you will need to dispute them with all three agencies.

2. Understand how you FICO score is calculated. A FICO score can be improved by paying your bills on time reducing your debt & having ample credit space especially zero balance accounts. A FICO score is the measurement of your financial stability.

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. Understand the way that a bank looks at your history. Yes a bank looks at credit scores & your down payment percentage but they will also look into your job stability cash reserves previous payment history & borrowing experience. This means that you should not expect a loan dramatically larger than anything you have gotten at before.

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 & insurance. You will need to provide proof of YTD earnings two years of tax returns & a listing of all investments including retirement accounts .

6. Know the ratios banks use to pre-qualify individuals. All monthly operating expenses & all debt payments including mortgage & car payments should not exceed your 40% of your household’s monthly income.

7. Find a broker that you can trust & 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 & their relationship with the banks.

Now is great time to buy a yacht. There are tremendous opportunities to purchase yachts at that represent an exceptional value or may have been previously unaffordable. Take the time to prepare in advance get “pre-qualified” for a yacht loan so you know that financing will not affect your negotiations or timetable to purchase.