Buying your first aircraft is an incredibly exciting experience, but the financing process can seem intimidating. Don't worry. By taking a methodical approach and working with the right partners, you can navigate the path to ownership with confidence. Here is our 6-step guide to success for first-time aircraft buyers.
Step 1: Get Your Financials in Order
Before you even start looking at airplanes, look at your finances. Lenders will want to see a strong credit score (700+ is a good target), a clear picture of your income, and a healthy debt-to-income ratio. Gather your tax returns and a personal financial statement.
Step 2: Get Pre-Qualified
This is the single most important first step. A pre-qualification from a broker like Jaken Aviation tells you exactly how much you can borrow. It makes you a credible, serious buyer in the eyes of sellers and allows you to shop with confidence.
Step 3: Assemble Your Team
You'll need a team of experts. This includes your financing broker, a trusted A&P mechanic for the pre-buy inspection, and an aviation insurance broker. We can help you connect with trusted professionals in each area.
Let Us Be Your First Call
As a first-time buyer, you need a partner you can trust. We'll guide you through every step of the process, from pre-qualification to closing.
Start Your Pre-QualificationStep 4: Making a Contingent Offer
Once you find an aircraft, you'll make an offer that is contingent upon the successful completion of a pre-buy inspection and securing financing. This protects you from being locked into a purchase if the aircraft has issues or if the loan doesn't get approved.
Step 5: Navigating the Pre-Buy and Escrow
The pre-buy inspection is a deep dive into the aircraft's condition. If it passes, the transaction moves into escrow. A neutral third-party escrow agent will handle all funds, title searches, and FAA registration paperwork to ensure a secure transaction.
Step 6: Closing and Beyond
Once the lender is satisfied with the pre-buy and title search, they will fund the loan into escrow. The escrow agent pays the seller, transfers the title to you, and you are officially an aircraft owner. Congratulations!