Close a Boat Loan
When closing a boat loan and you need financing there are a couple things to think about. One is there a lien on the boat you are buying. If there is these are the steps you need to take.
Steps
- Decide if you would like to roll the sales tax, unit licensing, and registration fees into your loan: This should be determined before you finalize your loan you need to check with your local DMV to see what the sales tax, and license fees are
- Ask for a copy of current title or if the unit has a lien ask for a copy of the registration. (Boats: Must upload the boat title, boat motor(s) and boat trailer.) This will show who the registered owner of the unit is and therefore who has the authority to sell the unit.
- Provide seller documents:
- Power of attorney: from seller.
- Loan payoff statement: - Interest accrues daily, so we need a loan payoff statement that is good for 15 days. This will allow time needed for your finance company to issue payment to the seller’s lender. Typically the seller makes the request for the loan payoff and provides the payoff statement to the buyer.
- Authorization to payoff form: This form will be sent to the seller’s lender along with the loan payoff check that will be issued by your lender The authorization for payoff form informs the seller’s lending institution that the seller has authorized his/her loan to be paid off and that the title of the unit being held as collateral on the loan should be sent to your lender.
- Driver’s license: Send a copy of the front and back of your proof of identity to verify your identity in order to comply with license requirements and protect your lender from fraud. You can usually upload a digital photo or a screen shot. All files must be in color and legible.
- Purchase agreement: This document itemizes the unit you are buying and verifies that everything you agreed to buy is listed and correctly priced.
- Proof Of Insurance: You are required, as part of your loan agreement, to maintain comprehensive and collision insurance coverage on your unit for the entire term of the loan. The insurance must be in effect before we can fund your loan. Send your lender verification of insurance, through a convenient online service –
- Register and title your unit: You will need to pay sales tax , licensing, and registration fees(which you can pay out of pocket or rolled into your loan-see Step 1). You will need the title to complete this . It usually takes 2-4 weeks for your lender to receive it.
