When you buy a new boat, you will most likely need to take out a mortgage in order to cover the cost of the vessel. Getting the funds that you need in order to make the purchase will mean taking out a specific type of lien mortgage, known as a preferred ship mortgage. Unique to vessel buyers, this will place a debt upon your vessel which must be satisfied before other debts, so that your lender is fully protected. If you are seeking this type of mortgage, it is not uncommon for your lender to require that you obtain a US Coast Guard documentation certificate.
Mortgages and Coast Guard Certificates
When your lender asks you to obtain a coastguard documentation certificate for your preferred ship mortgage, they are essentially asking you to prove that you have the vessel, and that it is registered and documented by the coastguard. This will protect both you and your lender from thefts or seizure, and may also make it easier for you to get the right type of insurance for your vessel. These boat documents are more likely to ensure that your lender will be able to recover their money.
What Does The Documentation Mean?
If your lender obtains evidence that you have documented your vessel with the US Coast Guard, then they will be able to stop any transfers or sales of the boat. For example, this means that you are not able to move the boat from its original port of registration, so you will not be able to conceal it somewhere else. You will also not be able to sell the boat and transfer the paperwork until you have satisfied the mortgage. The coastguard will prevent any movement of the boat until this happens, and this not only makes it more likely that you will get a lower cost loan, but that you will be protected from theft or seizure of the boat by other lenders.
Get Your Mortgage Quickly With Our Documentation Services
Obtaining US Coast Guard documentation for your vessel can take longer than anticipated if you are struggling to complete the forms required by the coastguard. We think that you will benefit from our services, which include reading through documentation before it is submitted, and checking your form to ensure that it is correct. To get help with your documentation today, call the Vessel Documentation Center (866) 981-8783, or send us an email at info@nvdcrenewal.us today.