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The broker's information is only as good as what the seller provides. Financial institutions often consider boats to be luxury items, so the application process is more like buying a house than buying a car. As part of the underwriting process, many lenders will ask for a personal financial statement along with tax returns.

For used boats, a tax return is often required. It's a good idea to talk with prospective lenders before filling out a loan application. On a new boat, lenders need the Manufacturer's Statement of Origin. It certifies that it has had no other retail owner. With used boats, lenders check for a clear title or record of ownership. For larger boats, lenders usually require marine-insurance coverage and federal documentations as conditions for loans.

You will need the MSO when you register or document a new boat. If the boat is financed with a loan, the MSO will be transferred to the lender; otherwise, it will be included in the boat's papers given to you at the time of purchase.

You or your loan company should receive the MSO when you take delivery. If not, contact the boat manufacturer at once. Without the MSO you may be unable to register the boat or meet insurance requirements. The magazine provides boating skills, DIY maintenance, safety, news and more from top experts.

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