Farallone Yacht Sales
1070 Marina Village Harbor, Suite 104
Alameda, CA 94501 • T. 510.523.6730 • F.
510.523.3041 [email protected]
http://www.faralloneyachts.com/brokerage/brokerage_faq/brokerage_faq.html
Farallone Yacht Sales 1070 Marina Village Pkwy. Ste.
- 1 - 104 Alameda, CA 94501 510.523.6730 © 2011 Farallone Yachts
Farallone Yacht Sales
Open Boat Weekend
2nd Full Weekend of Every Month
Come Walk Our Docks!
Here’s what industry experts are saying about Catalina’s newest addition to the awardwinning 5 Series:
"Systems so well laid out, they’ll make
an owner actually want to do
maintenance.”
Catalina 425 Awarded Best Monohaul
Cruising boat 40 to 50 ft, Sail Magazine
http://www.faralloneyachts.com/brokerage/brokerage_faq/brokerage_faq.html
Farallone Yacht Sales 1070 Marina Village Pkwy. Ste.
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Farallone Yacht Sales
"A higher level of finish than some of
the more expensive boats in its
category.”
Catalina 425 Named 2017 Overall
Winner of Domestic Boat of the Year,
Cruising World
See the new model, Boat of the Year Catalina 425 at the Farallone Yacht Sales exhibit,
Pacific Sail & Power
April 6-9
Craneway Pavilion and Marina Bay Harbor
Richmond, CA
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http://www.faralloneyachts.com/brokerage/brokerage_faq/brokerage_faq.html
Farallone Yacht Sales 1070 Marina Village Pkwy. Ste.
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Farallone Yacht Sales
Yacht Financing FAQ's
Here‘s some helpful information on the process and terms of financing a yacht purchase.
Is it hard to get financing in today’s market?
How does a yacht appraiser determine a boat’s value?
What is an escrow account?
How often to boat loan rates change?
What is APR?
What are points?
What comprises my monthly boat loan payment?
What documents do I need for a yacht closing?
Is it hard to get financing in today’s market?
Rates vary from month to month and lender to lender. Many credit unions and
marine lenders are very aggressively competing for good boat loans, and have
positioned their competing rates, as such. The lending process is still relatively
simple and easy. Getting a loan for a newer model yacht, in good condition is
easier than almost any time in history.
Every individual has a credit score. This score reflects the level of risk associated
with lending to that individual. Scores range from 400-800, with higher being
better. Negatively affecting your score are things such as late payments,
judgments or collections, heavy use of credit, high ratio of actual credit to
available credit, and inquiries into your credit. Credit score plays a significant role
in determining your ability to get a loan of any kind (marine, residential, or even a
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Farallone Yacht Sales 1070 Marina Village Pkwy. Ste.
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Farallone Yacht Sales
credit card). A qualified mortgage broker can often assist you with any concerns
you might have and Farallone Yacht Sales is happy to recommend one to you.
How does a yacht appraiser determine a boat’s value?
Most boat appraisals are determined by a licensed yacht surveyor. He or she
computes a boat’s value a few different ways: 1) By analyzing other comparable
vessels currently for sale; 2) By analyzing comparable boats that have recently
sold: and 3) By integrating these numbers with the “book value”, usually defined
by NADA, or BUC. The goal is to give the lending or insurance company a better
understanding of the value of the boat, to ensure that they are not lending money
or insuring an asset that is grossly over-valued. Farallone Yacht Sales can offer
you a list of highly qualified, professional hull and engine surveyors if you need a
recommendation.
What is an escrow account?
An escrow account is a safe place to keep your deposit, and any funds associated
with a boat purchase transaction. Farallone Yacht Sales keeps a legal, totally
separate escrow account you can safely use. Upon the close of a transaction,
escrow funds are released per written agreements and Closing Statements, signed
by both parties of the sale.
How often to boat loan rates change?
Yacht loan rates don’t necessarily change every day, but they can. These changes
are based on a variety of factors, but mainly will correlate to changes in the bond
market due to breaking financial news, world events, stock market movement, and
sometimes supply and demand of marine loans. Check frequently to ensure you
are receiving the most up-to-date rates. A small percentage point can make a big
difference!
What is APR?
APR stands for Annual Percentage Rate. APR is the effective rate you will pay on
your boat loan based on the interest rate and related closing costs. It will almost
always be higher than the interest rate on your loan, because it factors in your
“cost to obtain the credit”. However, it is important to know that your payment is
based on your simple interest rate, not your APR.
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Farallone Yacht Sales 1070 Marina Village Pkwy. Ste.
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Farallone Yacht Sales
What are points?
A point is 1% of the boat loan amount, and is a cost associated with closing. If
you have a $100,000 boat loan, a point is $1,000.
What comprises my monthly boat loan payment?
Your monthly payment for your boat typically includes principle, and interest. It
can also include insurance if your bank requires.
What documents do I need for a yacht closing?
Typically, to close you will need income Documentation like hourly or salaried
employment – W2s for the past two years, and paycheck stubs covering most
recent 30 days. If you are self-employed – typically you will need your most
recent complete Federal income tax return with W-2. If you are retired, lenders
will be looking for your original Social Security award letter or Pension award
letter.
Assets: To verify evidence of sufficient funds for closing, the following will
be required: Most recent original statement (all pages) for all checking,
savings, or other asset accounts.
Yacht Contract: Provide copy of fully executed purchase agreement for the
boat you want to buy, signed by you and the owner of the boat.
Other: Yacht Survey, Copy of Driver’s License or Passport
For more information, we’ll be happy to recommend additional resources to help.
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Farallone Yacht Sales 1070 Marina Village Pkwy. Ste.
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