applying for a loan myself or thru broker?

[SILENTKNIGHT]

The final price for boat will be 135000. I plan to put 75k down. My credit is 800

Should i allow the broker to get me the loan? or do i go online to apply myself. I just want to avoid having to submit any tax returns or bank statements. My SALARY SELF EMPLOYED IS ABOUT 70K.

 

[Comodave]

I used Cindy Lewis at Sterling. She was great to deal with and got me a good rate. 410-903-6611

 

[Blissboat]

In my experience, a borrower always does better when dealing direct with the lender. After all, any middleman needs to get paid somehow. Assuming the value of the collateral proves-out at the number you mention, then your LTV (loan-to-value) ratio is low enough to qualify you for any lender's most favorable rate and terms. Always get at least two, preferably three comparative loan proposals, and let the lenders know you are shopping.

On the other hand, an aversion to documenting your finances is a typically red-flag to lenders. Not necessarily a deal-killer, but it will likely undercut your negotiating leverage.

 

[Pau Hana]

In my experience, a borrower always does better when dealing direct with the lender. After all, any middleman needs to get paid somehow. Assuming the value of the collateral proves-out at the number you mention, then your LTV (loan-to-value) ratio is low enough to qualify you for any lender's most favorable rate and terms. Always get at least two, preferably three comparative loan proposals, and let the lenders know you are shopping.

On the other hand, an aversion to documenting your finances is a typically red-flag to lenders. Not necessarily a deal-killer, but it will likely undercut your negotiating leverage.

Exactly correct.

You didn't earn an excellent credit score without diligence. So, you should have no qualms with working with excellent lenders to obtain the best rates. This will necessitate you opening your financial profile for review.

OR- put an equivalent amount of cash in an account and pull a loan against the balance.

There's really no way around this.

I recommend Mike Jenkins and Lesley Bishop at Trident Funding-(206)-721-7704. I've worked with professionally them for 2 decades- they are the best.

 

[smitty477]

The final price for boat will be 135000. I plan to put 75k down. My credit is 800

Should i allow the broker to get me the loan? or do i go online to apply myself. I just want to avoid having to submit any tax returns or bank statements. My SALARY SELF EMPLOYED IS ABOUT 70K.

What is the year of the boat you are buying?

 

[SILENTKNIGHT]

2006

 

[Alaskaflyer]

My experience with Sterling is that the financed amount (not purchase price exactly) needs to be relatively high to interest them? Two of their brokers said that with my plan for a larger down payment they weren’t interested.

 

[DavidM]

I have mostly used broker introductions to their finance company for my new boats. Their terms always seemed competitive. One such lender was Key Bank, then the leading lender for boat purchases.

Yes brokers do get a kick back for referring a customer, typically 0.5%. But any direct lender has to use advertising and other means to bring in customers, so it all works out in the wash.

David

 

[smitty477]

2006

Always apply by yourself. The rates for a 2006 will tend to be slightly higher than for boats less than 10 years old. We have had good results with Essex in the past - here is a link with some recent rates.

https://www.essexcredit.com/home/boat/rates/#boatused

 

[Alaskaflyer]

Always apply by yourself. The rates for a 2006 will tend to be slightly higher than for boats less than 10 years old. We have had good results with Essex in the past - here is a link with some recent rates.

https://www.essexcredit.com/home/boat/rates/#boatused

Interesting that they have lower quoted rates for "liveboards" than for normal "used" boats, in the same price tier. I would think it might be the opposite (but what do I know)?

 

[4fun1]

Exactly correct.



You didn't earn an excellent credit score without diligence. So, you should have no qualms with working with excellent lenders to obtain the best rates. This will necessitate you opening your financial profile for review.



OR- put an equivalent amount of cash in an account and pull a loan against the balance.



There's really no way around this.



I recommend Mike Jenkins and Lesley Bishop at Trident Funding-(206)-721-7704. I've worked with professionally them for 2 decades- they are the best.

I agree with using Trident. I just used them on my recent purchase. They made it real easy.

 

[slowgoesit]

My experience with Sterling is that the financed amount (not purchase price exactly) needs to be relatively high to interest them? Two of their brokers said that with my plan for a larger down payment they weren’t interested.

Simple solution to that, tell them you want to finance 80%, apply, making sure there is no penalty for early prepayment, get the loan, make a substantial payment toward the principle a month or two after securing loan!

 

[denverd0n]

Interesting that they have lower quoted rates for "liveboards" than for normal "used" boats, in the same price tier. I would think it might be the opposite (but what do I know)?

Probably the same reason that the terms on a home loan for a principal residence are usually better than for second homes, or rental properties. The lenders make the assumption that you are going to be much less likely to be willing to allow foreclosure on (get kicked out of) a property that you consider more than just a house, but "home." And, of course, the statistics bear this out.

 

[IronZebra]

With excellent credit you may also check LightStream when doing your comparison shopping. They do unsecured loans for individuals with high credit scores.

 

[Shrew]

Simple solution to that, tell them you want to finance 80%, apply, making sure there is no penalty for early prepayment, get the loan, make a substantial payment toward the principle a month or two after securing loan!

While I tend to agree, the potential downside here is you end up with a higher monthly payment for the remaining duration. It is the duration of the loan that you've now reduced. Borrowing a lesser amount would have a lower monthly payment over the full term.

If you planned on making additional principle payment each month, then the former might not be that big of a deal. Just a thought.

 

[Alaskaflyer]

I just need to buy a more expensive vessel. Obviously

 

[bligh]

The final price for boat will be 135000. I plan to put 75k down. My credit is 800

Should i allow the broker to get me the loan? or do i go online to apply myself. I just want to avoid having to submit any tax returns or bank statements. My SALARY SELF EMPLOYED IS ABOUT 70K.

I have never used a broker for a loan. I have used their recommendations before. But no broker has ever put a loan application in front of my before.


I used Alaska USA credit union for a decent sized boat loan and they were great.

I imagine all lenders will want to see your tax returns if you are self employed. Ask me how I know.

Lightstream let me go without one on a loan for about $30k, but I'm not sure how that would work out for you.

 

[SILENTKNIGHT]

I took your advice, and spoke with Cindy Lewis @ Sterling Associates. The best experience in applying for a boat loan. I had an approval in 24 hrs. She walk me through everything and all my questions & concerns.

 

[Comodave]

I took your advice, and spoke with Cindy Lewis @ Sterling Associates. The best experience in applying for a boat loan. I had an approval in 24 hrs. She walk me through everything and all my questions & concerns.

That is how it went when she got us a loan. Glad it worked out for you.

 

[dhorn]

+1 on Cindy, she's great and has access to numerous loan sources that will work for you not the broker.

 

[kthoennes]

This kind of answer isn't very helpful I know, but I think "it depends." Like some others who responded already we used a local credit union too, both times. That worked out very well for us but of course you have to have a good credit union available and willing and it helps to have a prior relationship with them.

(Of course my first thought was that a six-figure boat on a $70K income will bankrupt you, but then your credit rating is higher than mine and you've saved more than your current annual salary for this purchase so I have no grounds to dish you any advice on personal finances. Wish I had that kind of discipline.)

 

[Juggerknot]

Plenty of choices to go with directly, no need to complicate things with a middle man. I would be careful that you don't stack a bunch of hard inquiries to your credit as it will drive down your fico. Bon voyage

 

[26permacraft]

With your good credit score (800), you can probably get a loan. When I was getting my boat, I needed an extra $3000. I didn't go through a broker because it seemed too much work and waiting.

Instead, I used a payday loans app. It was super easy – just a few taps on my phone and no big pile of paperwork. The app was fast and transparent about the loan choices and what they would cost. It was just what I needed to get the last bit of money quickly and without hassle.

 

[PM]

My response may not be totally relevant but I'll throw it in anyway. Of course the O.P. is out of my league, but $135,000 really isn't that much for a boat, new or used. But I think my rules apply.

Don't borrow money to buy toys.

There are several ways to accomplish this: A) Buy cheaper toys. B) save for a little longer. C) Sell some other toys to finance the new toy (ie: sell your other boat, maybe some guns, classic car or collectables, whatever.)

pete

 

[alormaria]

Try BoatUS.
They don't give loans but they work with banks who do.
They are good with all the paperwork and procedures too.

They are not like a middleman, more like a knowledgeable friend.
With friends.
With money.

 

[Action]

Being SELF employed depends on the health of your business.
Just because your business pays you a salary based on a decision you made would not exempt a mortgage lender from requiring tax returns and bank statements.

A lender that may find that acceptable is one that you currently have a banking relationship. That kind of past relationship may get you loan approval. With a lender that is new to you, the lender is looking to reduce risk as much as possible to meet the guidelines of a given loan product. And they do not have any past relationship experiences, except a credit report on how you handled other loans.

Lending is all about risk and return. The less documentation, the riskier the lending decision. Does not always mean you will not get the loan. However, it could mean you do get loan approval with less than the most favorable terms.

 

[PhilPB]

My response may not be totally relevant but I'll throw it in anyway. Of course the O.P. is out of my league, but $135,000 really isn't that much for a boat, new or used. But I think my rules apply.

Don't borrow money to buy toys.

There are several ways to accomplish this: A) Buy cheaper toys. B) save for a little longer. C) Sell some other toys to finance the new toy (ie: sell your other boat, maybe some guns, classic car or collectables, whatever.)

pete

That's my mantra as well. Helps me sleep at night...or during the day...or whenever

 

[Shrew]

My response may not be totally relevant but I'll throw it in anyway. Of course the O.P. is out of my league, but $135,000 really isn't that much for a boat, new or used. But I think my rules apply.

Don't borrow money to buy toys.

There are several ways to accomplish this: A) Buy cheaper toys. B) save for a little longer. C) Sell some other toys to finance the new toy (ie: sell your other boat, maybe some guns, classic car or collectables, whatever.)

pete

If the cost to borrow money is cheaper than what my portfolio is making, then I'll happy borrow the money. Why tie up $135K into a depreciating item, if the money is yielding more profit than the cost to borrow the money?

If I'm making 17% on principal, and money costs me 8%. I'm going to borrow the money and take 8% of the return and roll the remaining 9% back into the investment.

By paying cash, what you're really doing is borrowing from yourself. Are you paying yourself back the money that you borrowed from yourself? OR are you proposing taking money from an appreciating vehicle and moving it into a depreciating vehicle? That makes ZERO sense to me.

 

[Delta Riverat]

In my case the timing was good -

Sold equities at the peak of the covid market boom and bought the boat with cap gains.

Shortly after, the market fell, so yeah, my timing was good!

 

[CharlieO.]

In my case the timing was good -

Sold equities at the peak of the covid market boom and bought the boat with cap gains.

Shortly after, the market fell, so yeah, my timing was good!

I also had good timing, we refinanced the house at 2.5% and pulled a little equity out to pay for our boat.