When you are wanting to buy an RV, there are several steps to take care of before you apply for a loan. The first step is to 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. It will also show in good standing with your credit report.
The next step in applying for an RV loan is finding an RV that is practical for your needs. This RV should be within your income level. When searching for the perfect RV, you have to consider a few facts. The first fact to consider is how you will be using it. You also have to consider if you have a place to store it on your property or how much monthly storage rent will be. You also have to consider what the maximum weight the RV can be for your vehicle to safely pull it.
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. Usually 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.
While you are getting your other finances in order and finding the right RV for your lifestyle, it is wise to keep tabs on your credit score. 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 all the debts you have paid off, what you still owe, and any other financial activity you have. This is also a good way to gauge how much you will want for your down payment.
And a final step for getting an RV loan is doing your homework. 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. In most cases, the interest rate will make a difference if the loan is right for you. You should also find out about how many months the lending institutions offer for payback. This type of and what type of loan is offered.
Once you have completed these five steps, it is time to have fun shopping for your RV. Once your loan is approved, you and your family can make memories for years to come that will last a lifetime.