RV Down Payment
Saving For an RV Down Payment
- Step 1: Understand Financing Terms For an RV Down Payment
- Step 2: Find The Best Fit for You With an RV Search
- Step 3: Save For an RV Down Payment
When you are wanting to buy an RV, there are several steps to take care of before you apply for a loan.
Step 1: Understand RV Down Payment Financing Terms
Preparing to Save For an RV Down Payment
Be proactive and ensure your extra bills are paid off. This is something you should probably start at least a year prior to applying for an RV loan. Paying off extra bills will lower your monthly budget, showing more income is available for you to make an RV payment.
Developing a plan allows you to have a plan to take care of any debts that can affect what your down payment will be.
It will positively impact your credit score, keep you in good standing with your credit report, and potentially lessen the amount need for an RV down payment.
Research Lending Institutions
Many different lending institutions offer loans for RV’s. When you call around, you can ask a loan officer general information about the current APR. The APR is the annual interest you will pay for the duration of the loan.
You should also find out about each lending institutions payback period. This will be beneficial in comparing your options and determine how much interest will be paid to the institution over the life of the loan. Your credit score will play a role in determining which options available to you are best.
Your credit score is the number of your overall financial health that tells lenders how likely you are to pay back the loan.
You can request a free copy of your credit report once a year. The credit report will tell you which debts have been paid off, which debts you still owe, and any other financial activity is associated with your credit score. This is a great way to gauge how much you will want for your RV down payment.
Step 2: Find The Best Fit for You With an RV Search
Once your finances are in order you can determine which RV is practical for your lifestyle.
You need to consider three important questions:
- How will you be using it?
- Do you have a place to store it on your property? If not, how much monthly storage rent will be?
- What the maximum weight the RV can be for your vehicle to safely pull it?
Step 3: Saving For Your RV Down Payment
Once you have your budget minimized and have determined which RV is right for you, the next step will be saving for your down payment. When you are saving for a down payment you will want to consider the cost of the RV with tax, title, and license.
Loan officers like to see a minimum of 20% saved. If you are not sure about the amount you need for a minimum down payment, most camper dealerships have a loan calculator. You can get an estimated amount computed in a matter of seconds free of charge when you use this calculator.
Once you have completed these three easy steps, it is time to have fun shopping for your dream RV. Once your loan is approved, you and your family can make memories for years to come that will last a lifetime.
We take pride in helping each customer get the best plan for their situation. Contact us today so we can line you up with the best plan to get you in your dream RV.