Many pilots don’t know that you can get pre-approved for an airplane purchase without a specific airplane in mind. This holds true not only for piston airplanes, but for turbine airplanes as well. Pre-approval is a wise move to make since you can typically lock in loan rates for up to 30 days, protecting yourself against expected future interest rate hikes.
Pre-approval starts with one important task: You have to narrow down the options you are considering for your airplane purchase. Ideally, you should decide on the make and model of the intended airplane purchase as well as the range of years of manufacture.
The approval process is just about the same whether you have a specific airplane picked out or simply an idea of the type(s) of airplane you want. Without a specific airplane, you won’t, of course, fill out the airplane spec sheet until later. Note, too, that you are pre-approved pending the collateral review of the airplane you decide to purchase. Most lenders will be troubled by lost logbooks, damage history, and other negative factors.
The benefits of being pre-approved are that sellers will take you more seriously, and funding will go more quickly. By having a pre-approval, you will have much more leverage in the purchase process. Pre-approval brands you as a more serious buyer as it ups your credibility.
AOPA Aviation Finance can help you when it comes to the logistics of purchasing an aircraft—from pre-approval to purchase agreements to selecting an escrow agent. We can also help in your search for the right aircraft by providing advice on selecting and valuing the most appropriate aircraft for your mission. If you need a dependable source of financing with people who are on your side, just call
800.62.PLANE (75263) or visit aopafinance.org.