How Does the Pool Financing Process Work?

Building your dream pool sounds like the perfect plan, but how do you pay for it without breaking the bank? Pool financing is the answer!

To understand how pool financing works, you should know what you want your project to look like, and how much it will cost you. However, the budget you have in mind may not always be realistic.

In that case, financing your project is a good option. In this comprehensive guide, we will tell you everything you need to know about it. Before impulsively choosing a company, it is crucial to conduct proper research.

So, if you are eager to have this new addition to your home, but are skeptical about how you’ll pay for it, don’t be concerned.

Let’s dive into the details so that you can, soon, dive into your new pool!

What You Need To Know About Pool Financing

Nothing sounds better than relaxing by the side of your pool during a hot summer day, right? Well, if you want to build a pool in your home, you must know that it’s an inexpensive project. For most homeowners, opting for pool financing is the best option.

Here are the options that you can choose from.

1. In-house Financing

This is the easiest option; however, it can also be the most expensive one. In-house financing refers to financing your pool project from your builder. This is easy to obtain as many pool builders already have a working relationship with lenders.

The pool builder may be able to help you with the paperwork required and guide you regarding your budget. But, keep in mind that it is not the most affordable option.

2. Personal Loan

You can quickly get a personal loan from various sources such as online money lenders, banks and credit unions, or peer-to-peer lenders. You will not require to put up collateral for this type of loan.

The interest rates are typically higher for unsecured personal loans. You can have a choice of your loan terms and even choose between fixed or variable rates. The biggest disadvantage you may face in this type of pool financing option is that most personal lenders have loan limits, which is below the amount you need for your pool.

Moreover, different lenders have differing terms. You may have to conduct your own research before finally choosing one which suits your requirements.

3. Home Equity Loans

These are commonly known as ‘second mortgages’. It provides you with a lump sum amount at a fixed rate of interest, which you can pay back over 10 to 15 years. You are only eligible for a home equity loan if you owe the lender less than what your home is worth. You must also have equity in the house to be eligible.

In doing so, you can borrow the money against the value of your home. Your home will serve as collateral.

The most significant benefit of opting for a home equity loan for pool financing is that the interest rate will be lower than other forms of financing. Furthermore, the interest may be tax-deductible, as long as you itemize your deductions.

The best part is, you can pay back the loan over a period of 10 to 15 years, giving you adequate time in case of any financial issues.

How Much Does Pool Financing Cost?

Building a swimming pool can be an expensive ordeal. However, people still choose to go ahead with it because of the luxury they can enjoy once the project is over. Not only does the pool add aesthetic appeal to your home, but it also increases its value.

The cost of pool financing varies depending on several factors, such as,

a) Type of Pool

Depending upon the type of pool you wish to install, your costs may vary significantly. A vinyl pool may cost you around $20,000 to $60,000. A concrete pool, on the other hand, would cost you approximately $30,000 to $60,000. Finally, a fiberglass pool would cost you around $20,000 to $40,000.

b) Pool Size

The size of your pool will be an important factor to consider when calculating its price. Obviously, the bigger your pool, the more it will cost you. However, it is a one-time investment, so don’t go for something too small just to save some money.

c) Additional Features

You can always choose to add features to your pool to increase its comfort and overall appeal. The more items you add, the more it will take to pay for them and maintain them in the long run. Some of the additions which will affect your pool financing value include pool covers, a heating system, lighting, water treatments, and pool cleaning services or equipment.

How Long Does Pool Financing Take?

If you opt for an unsecured personal loan, it would typically take 5 to 7 days to submit your application and sign the loan agreement. However, paying back the loan amount may depend upon your contract with your dealer.

A secured loan would take 4 to 5 weeks for approval.

How Is The Loan Amount Paid?

In the case of secured lenders, dual-party checks are typically made out to you and the pool building company you choose. You may endorse the check and then hand it over to your construction manager.

An unsecured lender will disburse your payment electronically. This is typically done after your approval on a pre-decided date.

Final Words

Qualifying for pool financing and understanding it can be a comfortable process. We hope that our comprehensive guide informed you about what you needed to know.

That being said, it is vital to understand the process entirely before making any hasty decision. We know that building your dream pool sounds exciting, but it is essential not to get carried away.

With that, we bid you adieu! Until next time!