With thousands of boaters on the water each year, to say that boating is popular is an understatement.
This enjoyable pastime continues to delight the older and younger crowds alike.
Do you feel yourself itching to be a boat owner? With many people, boat financing is the only thing holding them back. We can help you learn how to finance your boat.
Continue reading this article to learn the best practices for getting a boat loan.
Determine How Much Boat You Can Afford
Before you start shopping for a boat, you need to know how much boat you can afford.
Look at the different types of boats you’re considering and get real pricing on them. You don’t want to guess how much money you’d be paying. If you don’t know how much boat you can afford, you might come up against problems when it comes time to buy.
Learn How Much Money You Can Borrow
If you don’t have all of the money you need to buy your boat cash, it’s time to look for a boat loan. Boat financing isn’t hard to get when you understand how it works.
When you’re trying to qualify for a loan, you need to determine your debt to income ratio.
To find your debt to income ratio, total all of your bills you pay on a monthly basis. Once you have the total of the bills you pay each month, divide it by the pre-tax income that you bring in each month.
When you have a debt to income ratio above 40%, this is when you shouldn’t expect to be able to get a loan. Before trying to finance this purchase, you should pay down the other bills you have and lower your debt to income ratio.
For help with determining how much you can borrow and see options for personal loans here.
Improve Your Credit Before Buying
If you want to get a better deal on your loan with a better interest rate, work on your credit. Pay your bills on time, pay down debt as you can, and take care of any derogatories on your credit.
The better your credit is, the more likely it is that you’re going to get the green light on your loan with a decent interest rate.
Learn When It Is a Good Time to Buy a Boat
As you see all of the signs that say to view our boats and check out pricing, when is the best time to buy?
If you want to get a good deal, fall is arguably the best time to look for and buy the perfect boat. Most people don’t want to buy a boat during the fall, so boat manufacturers are usually more than happy to knock some money off the price.
You’re a Pro at Boat Financing
Now you know how to go about getting boat financing, and you can get the boat of your dreams.
Do you want to learn more about financing and other financial issues? Our site is full of articles that can help you with boat financing and beyond.
Browse our site, drop a bookmark, and come back again soon to learn more about boats and more.
