How to Find the Best Pool Loan Company
Pools aren’t cheap. That’s why they’re considered as investments by most pool owners who spend a substantial amount of money in remodeling and in maintaining their private swimming pools. That said, it’s not uncommon for families to look for loan companies and even pool contractors that offer a pool loan on top of the basic services that most pool professionals provide.
A pool loan will not only help you fund your pool project, but will also open up possibilities to additional features and amenities that you can add to your pool. Thinking of having your pool resurfaced, remodeled, and even having your equipment replaced, a pool loan can help make it happen. That said, it’s important to find the best pool loan company or institution to help you finance your pool without asking for too much in return. Here are a few tips.
- Check your financing options.
Different pool companies offer different pool financing options. Knowing what options you have available will help you make an informed decision when going into a loan. Here are a few examples.
- Secured Loans: Secured loans are financing options that let you borrow money using a collateral. The term, secured, comes from the actual collateral you present to the bank or the financial institution to give them a sense of security towards the money you’ve borrowed. Secured loans require a slew of requirements and different processes before you can get an approval. Nevertheless, the payment terms are usually from around 10 to 15 years, so the weight of the loan isn’t going to be that heavy against your finances.
- Unsecured Loans: The exact opposite of secured loans. They require no collateral and can be paid off in as early as 12 months to 7 years. The only catch is that unsecured loans usually have higher interest rates, so you’d better be updated with your payment or else you’d be raking up penalties.
- In-House Loans: Last but not the least are in-house loans. These types of loans are usually offered by the pool contractor you’ve signed up with. One of the advantages of taking up an in-house loan offer is that it’s usually more convenient as your contractor can help you out with some of the paperwork and endorse your application to the lending institution they’ve partnered up with. That said, your options are limited to the companies your contractor is working with.
Knowing your lending options will help you decide which path to take when it comes to choosing the best means to fund your pool project. Remember, it’s best to check out all of these options and get a feel of how it can benefit you by talking to agents and representatives, which brings us to our next tip.
- Compare the competition.
Make sure you ask a lot of questions when you get the chance to talk to a financing representative. We’re pretty sure they’ll be more than happy to answer your questions as they’ll take it that you’re interested, so don’t hesitate in asking questions and clarifications. Also, make sure to take notes because you’re going to need them later. Here are some of the questions worth asking.
- Requirements: As we’ve briefly covered above, some options will require tons of requirements while others won’t. Make sure to ask the agent you’re talking to what requirements they’ll be looking for so you can prepare them beforehand should you decide to borrow from their company. The usual requirements are your social security number, a driver’s license, a list of your financial assets, a list of your collateral assets, sources of income, and your registered business/businesses, if any.
- Terms: Ask them to be specific in the payment terms they have to offer. For many borrowers, the terms of payment is a major deciding factor as it allows them to predict their budgets. Some borrowers even sacrifice higher interest rates for longer payment terms just because it’s easier for them to keep up with a longer payment schedule. Speaking of which…
- Interest Rates: Another thing you should be concerned about are interest rates. A higher interest rate means that you’re basically paying more for the amount you’ve borrowed while a lower rate means that you’re paying less. Think of it as the fee you’re charged for borrowing the money. Interest rates are also affected by different factors, which you should bear in mind. As an example, higher interest rates are often accompanied by long payment terms and vice versa.
With all the details written down, make sure to run through it and compare each company. Work out what’s best for you and where you’ll benefit from. Weigh out the advantages and disadvantages of signing up with each financial institution before you shake any of their hands.
- Trust your gut.
Finally, trust your gut when you’re about to make that decision. Nobody knows how stable your cash flow is and what your spending habits are, so trust yourself when your gut tells you you can or you can’t. Don’t rush into any commitment, especially if it’s financial, when something in you tells otherwise.
If you’re really unsure about the decision you’re about to make, feel free to ask your friends and family who will be more than eager to help you out. It’s good to go with a company or even a person you can trust when borrowing money, particularly when you’re putting up assets for collateral. You don’t want your properties forfeited and sequestered when you’re overwhelmed in debt. So make sure to trust your gut when taking up a loan.
One can have a lot of options when funding a pool. Whether it’s having one built or having one renovated, pool loans can help ease the burden and let you add the features you’ve been wanting for your dream pool. So, we hope that these simple tips can help you find the best pool company that suits your situation and your needs.