Are you looking to finance your pool? Most clients that purchase an in-ground swimming pool do indeed need some sort of financing. Swimming pool financing typically should be a fairly painless process. Although the process is simple, I do want to share with you three things to consider before signing on the dotted line, to help make the process even easier!
1.) Payment Schedule On Your Swimming Pool Loan
When signing with a swimming pool contractor, you will have to maintain a payment schedule during the project. This will allow the pool contractor to get paid while they are working through your project. Typically this payment goes something like this:
Pool Deposit – This allows you to get on the pool contractors list and is usually from $1,500.00 – $5,000.00
50% of the total – This payment is usually done about a month before the project starts. It also allows the contractor to order your materials for the project, such as the pool, pump, filter, heater, etc.
40% of the total – This payment typically happens when the pool is being backfilled with stone.
Final upon completion – This is the final payment and it should not be due until the project is completed.
When financing the project, your lender will also have their own terms that are usually not flexible. Typically they go something like this:
25% at the excavation
25% at swimming pool back-fill
25% at tile/coping or pool decking
25% at completion of the pool project
As you can see the numbers actually differ dramatically. So it is important to ask your swimming pool contractor if they are willing to work under the lender’s terms. Usually, it is not a major issue but it is always best to double-check before moving forward
2.) Do Swimming Pool Loans Cover Landscaping?
You would think that this is a non-issue when trying to plan the budget, but this can definitely cause some challenges. We all know that with the construction of the pool, comes the destruction of certain portions of your backyard. Whether it be an in-ground pool or an above-ground pool, the yard will still need some repairing.
Please be sure that your pool loan covers repairs or additions, such as landscaping, sprinkler systems, and landscape lighting. It is more common than not that swimming pool lenders do not cover the entire project. With that being said, do not be discouraged there are pool lenders out there such as Light Stream Financial and HFS Financial that will cover the entire project in full!
3.) How long does it take to get funding for a swimming pool loan?
Although it may only take 24 – 48 hours to get approved for a loan, that does not mean that you will have money in hand within that 2-day period. Once approved, most loans do take about 30 days to actually have the funds available.
This is important because it is not uncommon to have a client sign for a pool, and not have the funds available at the start of the project. We recommend that you get pre-approval for the loan before meeting a contractor. This is important because now you will know what your exact budget will be. Once you decide on a swimming pool contractor, get funded for the pool loan immediately after signing the contract, being sure not to cause any delays in the project!
If you are interested in getting financing for a swimming pool that we install, please visit our financing page for more information!
