Why we need them - How we use them - What you should know

A credit report is a summary of information about your credit – including a repayment history and a current status of your accounts.  Your credit report will show whether you are making payments on time, how much you have borrowed, and how much available credit is remaining to borrower against.  It will also show if there are, or have been, any negative public filings for nonpayment of obligations.  The Credit report is the Primary Sourcce that creditors use to evaluate your repayment history of current and past debts. The credit score that is shown on the report provides a sense of credit risk and allows a potential creditor to make an edicated decision whether to approve your loan request. Therefore, a good credit rating is essential for your financial future.

Think buying a boat is just about weekend adventures and sunset cruises? Think again. Your boat might just save you money on your taxes too. Yep—you read that right.

Facts, tips, & explanations on what marine lenders expect

A basic definition of liquidity is the ability to sell an asset without losing much, if any, of its value.

Lenders want to see an applicant with liquid assets such as cash, stocks, bonds, and mutual funds that can easily be converted to cash within 30 days. These assets combined should show that you have the money for the down payment, sales/use tax on the boat if not included in the loan, and reserves set aside for loan repayment and living expenses should your income decrease unexpectedly. The standard down payment requirements range from 10 to 20 percent of the purchase price and it’s wise to have savings after the down payment of 6 to 12 months’ worth of total payments (home, auto, boat, etc.).

Getting a pre-approval before you start searching for a boat or RV to purchase is something that will really come in handy. It saves you from wasted time and frustration by looking at units that are unaffordable. Also, your offers are more likely to be accepted by sellers when they know you are already pre-approved and have your financing in order!

Below are some trusted resources to support you throughout your Boat and RV buying journey: 

• BUC Valuation: www.bucvalu.com
• J.D. Power Pricing: https://www.jdpower.com/boats / http://www.jdpower.com/rvs
• Society of American Marine Surveyors- SAMS: www.marinesurvey.org
• National Association of Marine Surveyors- NAMS: www.namsglobal.org
• National Marine Lenders Association: https://www.marinelenders.org/
• American Vessel Documentation Association: https://americanvessel.com
• United States Coast Guard Documentation: www.uscg.mil
• Marine Trades Association of Maryland:https://mtam.org/
• National Oceanic and Atmospheric Administration: http://www.noaa.gov
• National Weather Service: https://www.weather.gov