There’s no denying that owning a pool does put a strain on your pocket.
Be it for constructing, remodeling, or maintenance – there’s hardly an expense that comes easy. Moreover, some needs are so immediate that they don’t even give you the time to save up. And that’s where pool financing companies come into the picture.
But that doesn’t mean you will opt for the first company that crops us in the search results. There are a few checks to make sure that you get the best companyto cater to your needs. So, today, we’ve compiled this short guide that will help you find the best pool financing company in your area.
Let’s get started.
How to Find The Best Pool Financing Company?
1. Calculate The Total Cost
Even before you can start searching for the best pool financing company, you should have an idea about the sum that is to be borrowed. Begin by taking into consideration the exact pool type that you’re looking to build. This will depend on the intended use, which in turn, will be decided by the number of family members, size, and features.
The best way to go about it is by seeking help from professionals. Contact your contractor to get a detailed breakdown of the total cost involved. In doing so, strive to maintain a reasonable budget and a realistic timeline.
2. Assess The Company’s Reputation
There are two ways through which you get in touch with a pool financing company. Homeowners usually trust their contractors to lead them to a trustworthy lender, as many of them provide financing services. This will save you from the effort of scanning the market for options.
Since people generally conduct intensive research to hire a contractor and go for one that ticks all the right boxes, it’s understood that they show full faith in the related resources. However, you may also choose to get in touch with a pool financing company on your own. Ask for recommendations from associates or your friends who have had their pools financed.
Whatever be the case, we’d highly recommend assessing the company’s reputation. Visit their website to learn more about the years of operation, types of loan they offer, and testimonies of existing clients. If possible, get in touch with the clients to understand the pros and cons.
Also, check for their credibility – valid licenses, physical offices, and qualified personnel. The more research you do, the better it is for developing good negotiation abilities.
3. Check For The ‘Full Cost’ Of The Loan
As with any other loan, pool loans aren’t just about the amount that you are borrowing. Apart from the more basic interest rate, there are several other crucial factors like the application fees, consultation charges, origination fees.
Beyond that, it may also include an early payment fee. So, your decision should take into account all the related costs. Furthermore, by comparing the quotations of different pool financing companies, you’ll get a fair idea of the prevailing market rates. This will ensure that you aren’t being charged unnecessarily.
That said, additional charges may not always correlate to a bad deal. For example, many such companies may levy a small fee in exchange for a reduced interest rate. This benefits the borrowers as it cuts down on the long-term cost of the loan.
Let’s say you take a loan of $50,000 at an interest rate of 8.99% for 15 years, for which the company charges no other fees. This amounts to a payment of about $500/month.
In the second scenario, the company charges a one-time upfront fee of $699 for the same principal amount. It reduces the interest by 2.2% to 6.49%, and as a result, the monthly payments come down to $435. Overall, you save $65/month, thereby saving $780/year. Now that’s a deal!
However, watch out for some warning signs. Cheap upfront charges in exchange for an unusually low interest rate should set off the alarm bells. Likewise, all the related fees should be clearly mentioned in the loan documents.
4. Note All Terms And Conditions
If you’re happy with the interest rate and have made your mind about the said pool financing company, then the next step is to understand the repayment terms. Genuine companies will have all the discussions formally documented, be it the repayment structure, prepayment, or late payment penalty.
If you notice any mismatch, or if the company refuses to put down any clause in writing, it’s probably better to look elsewhere.
5. Keep An Eye On Customer Interaction
Not everyone may have a thorough understanding of loans and mortgages. Thus, it becomes the responsibility of the lender to explain the technicalities involved in the process.
A good way to gauge how customer-oriented your preferred company is by observing their interaction abilities. Has the person understood your problem to the tee? Is he/she able to provide satisfactory answers or appropriate solutions? If not, have you been directed to the concerned personnel or department?
If you have ‘no’ for an answer to even one of the questions above, then maybe you should explore other options out there. But make sure to start the process all over again.
Read More: The Pros and Cons of Owning a Swimming Pool
Finding a pool financing company is easy, but finding the best of them all will take significant time and effort. And we’re sure that you wouldn’t want to make any compromise here!
Not only will a good company offer great overall value for your loan, but it also ensures maximum support to solve any problem that may arise during the tenure. Hence, we strongly recommend ticking all the boxes before you take that final call.
With this, we have come to the end of today’s guide. But before we take your leave, here are two pro tips: first, set aside considerable time to make a decision. Second, don’t ever try to skip or shorten the research. Leaving out on a seemingly minor detail can land you in the soup real quick!
Hope you can soon build the pool of your dreams. Till next time, adios!