(ThyBlackMan.com) Are you finally ready to build your swimming pool? If a backyard pool has always been a dream—you’ve probably already considered the finances. However, have you considered everything? You may have saved up enough to get the best pool builders. And, you may even have enough to cover a hot tub or elaborate waterfall fixture.
Have you considered installation costs, permits, equipment, and maintenance? Do you have enough to pay it all at once, or do you need an installment scheme? If so, have you considered monthly payments? As a homeowner, consider taxes, pool contractor fees, and any changes to your home’s value. It could boost the value of your home, but it depends on several other factors. The good news is that there are several options to help you pay for your new swimming pool. Here’s how to find the right one.
Use an all-in-one approach
Have you found a dream pool company to design your new pool? You’ve set a budget, have a pool design in mind, and decided on water features. Of course, now you need to find the best pool builders to execute it all for you.
When you look for a pool company, it’s best to look for one in your area. You can save costs with local companies and prevent any permit or zoning mistakes. These can change according to zip code, so narrow your search to pool builders in your state. For example, in the Tampa Bay Area, search for “pool contractors Tampa”—then narrow it down by zip code if possible.
How is a pool company going to help you finance your pool? Well, the best pool builders offer swimming pool loans and finance options in-house. It’s often an excellent idea to opt for these companies. It’s convenient, and the financial institutions they partner with are usually top-notch. Since the company and lender know one another, paperwork is less of a burden on the borrower. Look for a pool company that offers a reasonable interest rate and won’t stretch your budget. Of course, one that will do a great job building you the custom pool of your dreams.
Pick the right pool.
You probably think all you need is enough money to buy the pool. Well, you may be in for a rude shock. Pool maintenance is as (and sometimes more) expensive as purchasing the pool itself. So, make the right buying decision to avoid paying extra later. Everything from the design to the water features will influence your budget. If you get a custom pool, make sure to check local laws about any extra features.
Ask your pool builder to make sure you don’t have to pay taxes on fancy additions like a hot tub or waterfall. Even if you have the budget for them now, future maintenance could cost a pretty penny. Also, check things like the cost of different water chemicals and what pool covering you want. Find out about installation costs, permits, and pool design. And see if the pool material you choose will influence your budget.
Consider mortgage loans.
It can take a lifetime to pay a mortgage—and let’s not get into the interest that piles up. However, if you can afford to take out a new mortgage, you’re in luck. Also known as a cash-out refinance, it can have more benefits than just paying for your new pool. Make sure you understand the basics. Read a mortgage 101 guide to find out what a home loan includes and if you’re eligible.
You will need to consult a real estate agent and a financial institution to see if you’re eligible. If so, also make sure you negotiate during the mortgage process with the lender. Instead of only getting enough money for your pool, try to get a better deal overall. You can be eligible for lower monthly interest payments. Or, you could have new equity options.
Find out about home equity.
Do you know anything about home equity? If not, you should find out. It’s a convenient way to finance your pool. If you have good credit, low debt, and a steady income—this is an excellent way to finance your pool.
With home equity, you can get a credit against your home. It works sort of like a loan with your house as the collateral. The amount you can borrow usually depends on the value of your home. So, if your home is in foreclosure or not worth much, this may not work for you. Because you don’t have to withdraw a lump sum, you usually have low-interest payments every month. Ask a real estate agent to value your house before you contact a financial institution. If possible, get a third-party valuation to ensure you’re getting the best price.
Get a personal loan.
Do you have the home equity to finance your pool? Not everyone does. And, perhaps you can’t afford to refinance your mortgage or save up enough cash. However, this isn’t the end of your pool dreams. You can also apply for a personal loan.
There are many types of personal loans, so make sure you find out everything before picking one. Ask what loan will help you with lower interest payments. Find out if there’s any collateral required and what happens if you default on a payment. Once you have all the information, you’ll know how to pick the perfect option for your needs.
Staff Writer; Peter Brown