This is the main reason why application accuracy is important. Filling out a form incorrectly increases the time it takes to process the application. It is important to take the time necessary to complete the application accurately and completely. Ultimately, the income/assets/liabilities you declare will be validated by the lender through your credit reports, background checks, etc.
Use of aircraft
Almost as often as not, we will see an applicant misrepresent their intent to use the aircraft on the online form. In our experience, people usually have a good idea of how many hours they intend to fly their new aircraft and whether it will really be for personal use, under a lease agreement bareboat or sale-leaseback to a third party, so it is best to provide this information as soon as possible.
If you present the app one way and then try to change the way you present yourself well in the process, not only could that reset the entire app schedule, but it could also undo the entire transaction.
Personal Financial Statement aka “PFS”
The personal financial statement is another part of the application that can cause problems if not completed correctly. Omission of information could significantly reduce the number of financing options that AOPA Aviation Finance can offer. Past omissions include bank account disclosures, as well as cash disclosures. Without knowing how much cash an applicant actually has, neither AOPA Aviation Finance nor its lenders can determine if they have a financing option.
Type of credit: Individual, Joint or Partnership
Other problems encountered include buyers who initially apply as an individual, but then choose to include their spouse’s income. It can be done, but if it is done, it means starting over and completing the co-applicants application. The same applies if a person chooses to register the aircraft under a commercial entity of which he only partially owns. They will need to add their spouse on a joint application or add one or more partners to the loan. All partners included in aircraft ownership will need to complete their own application.
The most glaring example is when a borrower produces an insurance certificate that is not representative of the request. For example, the borrower told the lender that he had created a single purpose entity – LLC or otherwise – under which the aircraft would be held for personal use. Instead, the COI comes in and the insured is a flight school. Not only could the bank stop the process, even when it is 95% complete, but we have seen banks withdraw the loan.
Very good advice. Excellent rates. Helpful and responsive representatives you can trust. Three good reasons to turn to AOPA Aviation Finance when purchasing or refinancing an aircraft. If you need a reliable source of financing with people who are on your side, just call 800.62.PLANE (800.627.5263) or click here to request a quote.