It can be quite a challenging to find the best boat loan rates in Florida. When you telephone a broker to ask about rates, you can be left feeling quite confused. This is why it is better for you to build an understanding of the process before you start requesting quotes.
Finding the Best Boat Loan Rates in Florida
Whenever you buy something on finance but now you are likely to be looking for the deal with the best possible interest rate and this is equally true for boat loans. One of the things you therefore need to find out first is whether or not the market is favorable to borrowers right now. When you speak to different brokers and ask them what the current interest rates on boat loans are, you will have at least an indication of the market. However, that is not necessarily an indication of how much you will end up paying.
The problem is that a broker will never be able to give you an accurate quote without a lot of information. The only thing they can do is give you an indication and this is based on the interest rate offered to qualifying individuals, which usually means those with a squeaky clean credit rating. The reason why it is hard to get a definitive quote of telephone is because the broker cannot yet truly understand what the nature of your purchase is, nor can they build an understanding of your credit history. For that, a full underwriting process is required and this means actually supplying an application for a loan.
However, despite the fact that the information provided to you by a broker will be indicative at best, you should still do it. That is because you don’t want to immediately apply for every loan as this will reflect poorly on your credit report and as it will not guarantee that you actually get the best deal. What you can do, however, is pre-qualify for a loan.
What Does it Mean to Pre-Qualify for a Boat Loan?
When you pre qualify, you are making a smart financial decision. What this means is that you will also give you a financial structure that will help you actually make that purchase. A good broker will be able to link you up with numerous lenders, ensuring that you get the one that has the best interest rate. Each lender has different acceptance criteria and different programs and a good broker will be able to guide you through all of that, matching you with the one that will offer you the best rate.
Because you are pre-qualifying instead of actually applying for a loan, you will not damage your credit score either. Make sure that you make it very obvious to your broker that what you are looking for is a pre-qualifier. If you don’t, there is a chance that they simply send your application through to lots of different lenders in the hopes of striking a good deal. Those are actual loan applications and they will actually apply on your credit score.