If you love flying so much that you’re ready to buy an airplane, there are some important things you should know about. The most important question is how to pay for a plane? Accordingly, if your income is not so great, the most rational answer to this question is to pursue an aircraft financing loan, which is similar to real-estate loans or car loans.
Then you have to go through four stages to become the happy owner of the plane.
First of all, there is need to examine the variety of lenders who offer airplane loans. Each creditor has its own features. For example, the size of the down payment and the timing of the loan.
It’s important to ensure that a potential lender handles the type of loan you are looking for. It refers to the age of the aircraft, your geographic location, whether the aircraft is bought for personal use or for your company.
Additionally, you must meet several basic requirements before getting a loan. These are the United States citizenship (or being a resident), your credit history and also a sufficient income to make monthly mortgage loan payments.
After that, you can begin applying for financing. It could be a paper application or an electronic application. Anyway, you will need to provide your personal or business returns, tax returns and probably the whole financial statement including your liabilities and assets. In addition, you will need to specify the value of the aircraft, detailing specifications of it, your previous experience with the aircraft and so forth. Then a few days later, the lender usually approves your application.
Before the loan can be funded, it is necessary to provide a bill of sale to the lender and more importantly, insurance.
Finally, you need to register your aircraft with the Federal Aviation Administration (FAA) and then to update your registration from time to time.
Getting an airplane loan can be stressful and time-consuming but your dream is worth it.