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Pool financing may not be at the forefront of your thoughts when you start daydreaming about that new swimming pool. How to pay for your pool may not even be in the top seven things that cross your mind. But, at some point, most people will have to face the reality that a new swimming pool in the back yard will require a substantial injection of money. Of course, there are many variables that determine how much a swimming pool will cost. The cost will have a direct impact on how you will pay for the pool. Many people take the pool financing option.

Pool Financing As An Investment.

If you assign more benefits to your swimming pool, the cost of financing your pool will seem less like an extravagance and more like a wise business decision. A swimming pool will add value to your property. On average, nationally, a swimming pool raises the property value by 8 to 15 percent. This percentage varies based on several factors, such as type of pool, region of the country, the neighborhood, and others.
The adage, “Money isn’t everything.”, is true. There are many intangibles that can benefit the pool owner. Swimming pools can bring family members together, they can provide tranquil havens of solitude and peace, they can be a beautiful addition to your home, a place of soothing relaxation or morning exercise. Some things are more important than property value.

Pool Financing Rates Vary As Much As Pool Designs.

The obvious parameters to consider are how much will be financed and how long it will be financed. Rates will also vary based on the borrower’s credit score. Someone with a credit score of 650 will normally pay a higher interest rate than someone with a 700 credit score, with a given loan amount and repayment timeframe. Typical finance terms can be anywhere from 24 to 84 months, and longer terms have lower payments, but will cost more in the long run. Interest rates can vary a great deal too! Anywhere from 3.99% to 14.00% is well within the interest range.

Pool Financing And Bad Credit Scores.

Many people think that they could never get a pool financed because their credit score is less than stellar. But, in reality, the many pool financing options available make it much more likely that just about anyone can get a pool loan. Of course, the interest rates for poor credit scores are higher than the rates for good credit scores. As with any big financial decisions, it pays to plan. Do your homework! Know going in, exactly what your credit score is, and work on improving it. Talk it over with your pool financier of choice, and determine if zeroing out some outstanding debt, such as credit cards, would raise your score to the point of being able to obtain lower pool financing rates. There are many options for different credit situations.

Who Will Finance Your Pool?

Pool financing is a specialized market. There are companies that do nothing but pool finance. Your pool builder may even have financing options. However, the pool builder will often guide you to one of the dedicated pool financing companies.
Lyon Financial has specialized in pool loans for almost four decades. They offer pool loans up to $100,000 with fixed rates, no fees, no early payoff penalties and have options for less than 680 credit scores.

Another well know company dealing in pool finance is LightStream.com. They are similar to Lyon Financial, but appear to want to do everything online. They will not accept application information via phone, fax or email, but only by completing and submitting their online form. They also want you to contact them by online form, no phone number listed. You access your account via, you guessed it, online.
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Getting a swimming pool installed is such an exciting moment for homeowners. It is also a very big investment, so homeowners shouldn’t jump into it too quickly without doing the proper research. I am going to provide some tips to help you with your research and what to look for. These tips are based on what is needed in the State of Alabama, so this can vary in any other state.

1. Are they licensed to do the work you need?

In order for your contractor to pull the needed permits to build your swimming pool, they have to be licensed in the State of Alabama as a General Contractor. In order to pull a permit in Mobile County for instance, a copy of their current general contractor’s license has to be presented before the permit can be issued. If a permit is not obtained, and an inspector discovers this, the job could be placed on hold until the proper permitting is put into place. Feel free to ask your contractor for a copy of their General Contractors license.

2. Is the company you contacted actually doing the work?

There are quite a few swimming pool companies that subcontract their work out to other swimming pool builders. This means that the person that you are meeting with may not actually be the person building your pool. Here are some questions you may want to ask: “Who will be building my swimming pool” or “Is the business owner on the site during the entire project”. If they are using a subcontractor, I would require information on that subcontractor.

3. Are they insured?

One of the requirements for a General Contractor to get their General Contractor’s License with the State of Alabama is liability insurance. You want to make sure that your contractor has liability insurance. If something happens on the job, you want to make sure they are covered. Without insurance, the property owner could become liable. This can cause the homeowner to come out of pocket if their homeowner’s insurance policy is insufficient to cover bills associated with an injured contractor or property damage that happens on your property.

4. Can they provide references?

There is no better advertising than word of mouth! Ask the contractor to provide references. If they are doing a good job in their business and adequate work, they should have customers willing to give references for them. Also look for reviews on the internet. Since reviews can be placed out there by anyone, I wouldn’t depend on just that when making a decision. References that you can talk to or meet in person are much better. If they are using subcontractors, ask for references on the subcontractors as well.

5. What is their appearance like?

This is more of a personal opinion for me, but I would like to think that if someone is going to be meeting with you at your home for an estimate, they should present themselves in a professional manner. I do understand that they are in the construction industry, and a lot of contractors can be a little rough around the edges. But how they present themselves, and how they conduct themselves should say a lot about their business.
I hope after reading this, you feel more comfortable knowing what to look for when selecting a reputable swimming pool builder. There are so many people that will do anything to make a quick buck and no one has time for that. Any reputable builder should be happy to provide you with information that you request and answer any questions that you may have. If they get hostile or refuse any of the above, RUN!! Your investment is too precious to fall victim to lousy contractors.
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