Recreational vehicle loan – Quick & easy tips for the first time buyer
As you delve through trade magazines and online classified ads to find the perfect new or used recreational vehicle for you and your family, you will notice all of the advertising for a recreational vehicle loan. Do not let this worry you! In fact, a recreational vehicle loan is a wise choice for you to think about when financing your Class A motor home, toy hauler, or travel trailer purchase. Once you have either found the perfect recreational vehicle or have an idea of what you want, you should definitely take some quality time to understand and begin the recreational vehicle loan process.
The following tips are a guide to get you started understanding and working your way through the financing process for the purchase of your new or used recreational vehicle.
1. The RV loan process can be done online or at a local lender (bank, credit union, dealership, etc.). The choice is yours, but no matter what method you choose, you need to spend some time researching to compare and contrast the different options you have in lending sources. Some people find it easier and more accurate to do initial comparison research on the internet. You can look at the different services, see the different interest rates offered, and asses which company’s recreational vehicle loan services matches your needs best.
2. One of the most important parts of the recreational vehicle loan process is trying to figure out what your needs are financially. There are recreational vehicle loan websites that offer the free use of an online recreational vehicle loan calculator. This tool is an easy way for you to enter in different monetary variables to see which combination fits your budgetary needs. There is a blank for interest rate, down payment, monthly payments, and price of motor home. As you enter different dollar amounts into the blanks, you will be able to see and compare monthly payments, etc. This will give you the knowledge on how much you can realistically spend on the actual purchase of a recreational vehicle, what your maximum monthly payment can be, and how much more you will have to pay monthly if you do not put anything down on a down payment.
3. Do you know your credit score and credit history? If you do not, as soon as you begin to think about making a large investment, such as a motor home, you should start to assess your credit history. Your credit score is something that your recreational vehicle loan source will look at and analyze. The recreational vehicle loan company wants to make sure you can and will pay back the money given to you for your purchase. You can obtain a free copy of your credit report once a year from one of the three credit bureaus. You can also request a free copy of the report if you have recently been turned down for a line of credit. Be aware, though, because the different credit bureaus may have different scores for you, and every time you request a copy of your report, a negative mark is recorded.
4. The RV loan application is very simple and straight forward, especially if you have done all of your pre-application homework (research, know your budget, ask questions, etc.). Make sure you pay attention to the questions asked, and fill the motor home loan application completely.
Buying a motor home is both fun and a great investment financially. Take the time necessary to read, research, and ask questions. This will help prepare you for both working closely with a loan officer, and maneuvering through the buy with a dealer. The bottom line is you will soon be at the wheel of your new or used motor home and ready for all of the memories it will carry you through.