How Does an Instant RV Loan Work?


When a buyer finds the RV that is perfect for him and that meets all of his needs effectively, the only thing left is to wrap up the deal and complete the financing if needed. Many RV finance companies offer quick or instant loans designed to make the finance process simple and quick for the buyer. These loans can often be completed at the dealership.


Instant RV loans often have a simplified application process, requiring the borrower to complete only the most basic of information, such as identifying information and personal contact information. The application forms may take up less than one page. The co-borrower, if there is one, will complete the same information on the form. All of the borrowers sign their names to complete the instant loan application.

Credit Score

The credit score is the largest factor in the approval of an instant RV loan. The higher the credit score, the easier the loan is to approve. Borrowers with credit scores of 750 or higher should have no problems getting an instant RV loan approved immediately without any additional information. The actual cutoff score for instant RV loan approval depends on the individual financial institution and its individual requirements.


If the borrower's credit score is high enough, often the underwriting process may consist of attaching the credit report to the application and moving forward with the loan by determining the terms that the bank needs, such as down payments and the length of the financing contract. If the borrower's credit score is lower, the finance company may need more information. The loan underwriters may require proof of employment as well as verification of the borrower's income with tax forms or pay statements. The underwriter may examine the loan-to-value ratio of the the RV loan more carefully.


If all of the paperwork is in order, and the borrower qualifies according to the financing bank's guidelines, the instant RV loan moves on to funding. The dealer must prepare the statement showing the down payment made by the buyer as well as any applicable trade in pricing. A copy of the bill of sale must be included as well as an application for title showing the bank as the lien holder. If the RV dealer is on the list of preferred lenders, funding is quick and relatively easy with the buyer signing the purchase contract at the dealer's office. With private sellers, the finance company may send a copy of the loan documents by Fed-Ex. The buyer signs the documents and sends them back, keeping the enclosed check to bring to the seller.

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