Once you find the perfect boat, you naturally are eager to get out on the water. You also want to make sure you do not lose the boat because you are stuck waiting for your financing to come through. Let’s take a look at the factors that will determine how long it will take to be approved.

Factors That Affect The Length Of Time It Takes To Get A Boat Loan

When financing a boat, there are several factors that impact the speed of the process. Some are inside your control and others are not. If you want loan approval faster, focus on what you can do to streamline things.

Your Credit

Lenders will run your credit history looking at your credit score and your debt-to-income ratio. If needed, they may ask to see a copy of your tax returns to validate income for higher loan amounts. Have your financial records in order and readily available if requested.

Keep your credit score healthy by staying on top of monthly payments and not taking on other fresh debt or making additional loan inquiries around the same time as you are shopping for boat loans. The higher your credit score is, the less likely your loan agent will need to spend additional time and submit your application to a higher-level manager for approval. While you can get a boat loan with a 650-credit score, it is much easier to get a loan with a 700-credit score or higher.

The Boat

If you want to set yourself up for fast boat financing, the type of boat you pick matters. Lenders may approve loans for both new boats and used boats, but it is typically faster to obtain a loan for a new boat.

With a new vessel, there is no question of the boat’s condition and market value. The lender can easily compare the purchase price and requested loan amount to the value of the vessel. A marine survey will not be needed.

A used boat, on the other hand, is more of a question mark. Boats 10 years and under are still new enough to be financed relatively easily, though a marine survey may be required to confirm that they are still in good condition. This will make the approval process take longer.

If a boat is 20 years or older, consider the possibility that your lender may not agree to finance it at all. If they do, they will most certainly require a thorough survey and you may also pay higher interest rates or a higher monthly payment in exchange for a shorter loan term.

The Bottom Line

If you are prepared and well-qualified when you apply to finance a boat, lenders could offer you a same-day loan with an interest rate and loan terms that work for you. If a survey or additional credit approvals are needed, the process can take anywhere from a few days to weeks.

Remember that if time is of the essence when you apply for a boat loan, do everything you can to streamline the process. Have your credit in order, your financial paperwork available, and ensure your boat purchase is one a lender will be willing to finance.

Need some help? Azure Funding can help you finance a boat quickly. We offer boat loans for new or used vessels with terms and rates to fit your needs. Give us a call today or click the button below to get started!



*All information in this post including, but not limited to, quotes, rates, term-length, and other loan information is purely informational and may not reflect your actual terms. Actual loan terms will be dependent on a number of actors including your personal credit history, assets, debt to income ratio, and more. Please speak with an Azure Funding representative today by clicking here to discuss your individual financial situation.