When financing a boat purchase, it is essential to know some key pointers in the world of "Boat Financing 101". These pointers can save you thousands of dollars, protect your credit rating, and prevent you from sailing away with a boat that could sink you both financially and physically! Here are five tips that the savvy boat purchaser must know before signing on the bottom line of boat loan.

1. Choose a lender carefully. Local banks might know you, but they do not necessarily know the boating loan world. Choose a marine finance specialist. National marine lenders will probably give better deals than banks.

2. Know the boat's value before you sign a purchase agreement. Research the boat's value in a marine price guide. Several marine guides can be found online. Do not take the seller's word for the boat's value. If the purchase is made in a coastal area, you should be able to check the local listings for similar boats.

3. Be patient. Purchases of both new and used boats require boat surveys. These Condition and Value Reports give details to the current value and condition of the boat. Similar to home inspections on a house purchase, these surveys assure both the lender and the buyer that the boat is sound. Hull inspections on a survey can reveal any prior damage or faulty repair. Both recreational and commercial boats need surveys. These cost about per linear foot on a recreational boat and per linear foot on a commercial vessel. The boat might require a haul-out if it is docked so that the surveyor can have access to the hull. This should be arranged prior to the survey appointment. A new boat survey takes about one week, while a used boat survey takes about two weeks.

4. When purchasing a boat, remember storage of the boat can cost also. Is the boat purchase including a trailer? Does your home owners association allow a boat to be parked in your driveway? Have you rented a boat slip? All these are considerations before you purchase the boat.

5. The survey will reveal the condition of the boat, but be ready for your own personal finances to be scrutinized. A credit check will be done. Have your paperwork in order. Just as a car purchase can require paycheck stubs, W-2 forms, or proof of retirement income, so the boat lender will require proof of income from the boat purchaser.

These five tips should guide you to a successful financing of your dream boat whether it is new or used. Smart financing can lead to more hours of boating pleasure on the water!