4 min read

    How to Get RV Loan Pre-Approval in Utah

    By Wasatch Peaks on December 6, 2022

    Topics: RV Loans

    Recreational vehicles, also known as RVs or campers, are a unique hybrid between a vehicle and a home that you can take on the road! They’re a convenient way to travel the states without the hassle of flying, plus they have built-in accommodations. But the downside is that RVs can come with a hefty price tag.

    Since an RV doesn’t fall in the typical car category it’s usually a much more expensive purchase. RV loans exist to help consumers like yourself finance these large, unique purchases!

    What Is an RV Loan?

    An RV loan helps you finance the purchase of a new or used RV, motorhome, or camping trailer that you can’t afford to purchase outright. Because they vary in size and luxuriousness, there can be a range of loans and terms, so be sure to do your homework! RV loans are separate from auto loans because an RV is a larger, more complicated purchase. 

    RV Loan Pre-Approval

    RV financing pre-approval can give you a leg up when it comes to your RV purchase. 

    With pre-approved financing, you’ll be able to get the RV you want, and you’ll most likely have more flexibility in pricing, especially if you’re getting a loan through a dealership. 

    Keep in mind though, that while a dealership can get you pre-approval for RV financing, you’ll then have to buy the RV from their lot. 

    If you’re thinking about getting pre-approved for RV financing, there are a few things you’ll need to know before you set out to find a lender. Take these tips into consideration to ensure you know what you can afford before you buy!

    Basic Factors for Loan Pre-Approval

    Lenders consider a couple of different elements when underwriting an RV loan. Your credit score is one of the most important. Unlike cars or homes, RVs are considered luxury items because they’re not a necessity but more “nice to have” items. 

    Therefore if you were to lose a job, become disabled, or weren’t able to pay your standard bills, lenders typically assume you would stop paying for "luxury" items first. Therefore lenders have a greater risk, so they price these loans higher. Make sure your credit score and history are in top shape to get the most competitive financing options. 

    Your debt-to-income ratio (DTI) is another factor that’s considered. Your DTI is the percentage of your monthly debt in relation to your gross monthly income. Your monthly debts are generally considered to be expenses such as monthly mortgage payments, auto payments, credit card debt, and other expenses that recur month to month.

    Utilities and other personal items (such as cell phone bills) are not fixed expenses, so they won’t be considered in computing your debt-to-income ratio.


    Steps to Getting an RV Loan Pre-Approval

    1. Borrow Within Your Means

    Have a budget and stick with it. When you own an RV, there will always be costs associated with repairs and upgrades so be sure to include RV maintenance and storage in your budget. Don’t get talked into borrowing beyond your means, even if you qualify for a bigger loan. 

    2. Arrived Prepared

    A lender will request certain documents to make sure you’ll be able to make your payments every month. When trying to get pre-approved for RV financing, bring all of the requested documents with you. These would include things like your most recent tax returns, pay stubs, a valid ID, and your credit score. 

    And remember, knowing your credit score and history in advance is important because it will determine your interest rate. 

    At Wasatch Peaks Credit Union, we offer some of the best RV loan rates in the state of Utah due to our low fixed-interest rates. This enables you to pay off your loan quicker! Our terms range from 60 months to 15 years, so there are plenty of options to find what’s best for your budget. 

    3. Save Up for a Down Payment

    In general RV financing will require, at a minimum, a down payment of 10% of the purchase price. Some lenders could require, or might prefer, a 20% down payment. To ensure you’re ready to take the leap when you find your perfect RV, start saving for a down payment as soon as possible.

    A larger down payment can not only reduce your monthly payments but also decrease your interest rate and the overall cost of the loan. If you have less than stellar credit, providing a larger down payment may also increase your chances of an RV loan approval because it lowers the amount you need to borrow thereby reducing the risk for the lender.

    4. Negotiate

    Don’t be afraid to negotiate. If you’re in a good financial position, you might be able to get a percentage point knocked off the interest rate. It may not sound like that would make a significant difference, but 1% will add up a lot over 10 years of monthly payments. That’s more money in your pocket so you can plan the ultimate Utah RV trip with your new ride!


    Complete Our Online Application Now!

    An RV loan pre-approval is important no matter where you decide to buy your dream vehicle. Wasatch Peaks makes your RV pre-approval fast and easy. Click below to learn more and apply with us today!

    See our low-interest loan rates & additional benefits.

    Wasatch Peaks

    Written by Wasatch Peaks