The RV dealer has a finance manager who will be required by the banks to ask many questions about your personal financial condition, just like a doctor asks questions about your body's current condition and medical history. There is also a database that is kept by 3 credit reporting agencies on your payment history and other issues related to your borrowing habits. The more information you give, the lower the risk for the lender. This may make you eligible for lower rates if your history meets the minimum requirements for each rate tier level.
The Following Information Is Usuaully Required to get a RV Loan:
If Employed or Retired on a pension:
Co-applicant information (if a joint Application) Personal financial statement including all investments that will support up to the value of the RV being purchased. (By showing this, you are showing the lender that you do not need the loan as the only way to finance the purchase, which may help get a lower interest rate)
Past Two years current 1040 Federal Income Tax returns complete with all schedules, including W-2's. ( Your income must meet monthly debt to income standards which are normally 35% - 40% of your monthly Income with the RV loan being no more than 25% - 30% of monthly income. Some banks through "Participating Dealers" may offer loans under a certain dollar amount without proof of income if your financial statement meets their minimums.
If Self Employed, loans can be more complicated. As a borrower, you must understand that a loan is considered a business agreement by the lender who is in business to make a profit based from the level of risk they are taking. The more information you supply them, the lower their risk is in loaning or investing the money in you and your depreciating asset.
Business Financial Statements
Two years Corporate Federal Income Tax returns.
RV Purchase Agreement
Documentation explaining and/ or support any unique situations.
Remember, the more informaton the lender has on you, your spouse, your business, your liquid assets and investments, the less risk they are taking loaning you money. This may result in a lower rate or payment on your dream.
Do NOT assume that this means you get a great rate. Shop around and do not take the first rate you hear as gospel. Negotiate, negotiate, negotiate! No winners or losers....Just Be Fair!
Whether your are a cash buyer or finance buyer, Please buy within your means. Instead of a new coach, buy a coach that is a few years old until you know that this is what you want to spend time doing. Then, go for it. It is at this point where your recreational vehicle may become your retirement vehicle and a business with a great personal return that you can not put a price on!