What’s a preapproval?
Helping in the hunt for your perfect airplane
A preapproval simply allows you to walk into a potential airplane deal already armed with the financial backing of a lender. It provides you leverage to act quickly and decisively, particularly in a tight seller’s market like this one.
The typical loan application process can take four to six weeks or more from start to finish. That process includes finding an airplane, vetting the airplane, and vetting the buyer. By the time all is said and done, you may have missed out on multiple airplanes.
Don’t get preapproved for a Cessna 182 and then start window-shopping for Cirrus SF50 Vision Jet.Preapprovals offer you the chance to jump-start the process by being vetted first. Once you’re good to go, you’re cleared to find the airplane of your dreams—as long as it’s similar in make and model to what you were preapproved for in the first place. In other words, don’t get preapproved for a Cessna 182 and then start window-shopping for Cirrus SF50 Vision Jet.
Like any preapproval process you’ve experienced before—auto loan or home loan, for example—part of the preapproval includes pulling your credit history. The lender is seeking to get a full sense of your character. Credit history fleshes out your financial personality in a way financial statements alone cannot. Incidentally, checking your credit as part of the preapproval process does not hurt your credit score.
How long are preapprovals valid? It depends on the lender. The average time period is 60 days. A few may stretch to 90 days. That should give you plenty of time to hunt down the right airplane.
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