Building a house with a swimming pool is no longer a
luxury nowadays. With its feasible function as well as its financial advantage,
swimming pools are now considered as hot portion of a house.
Experts say that the presence of swimming pools in
homes create a higher market value, bringing homes at a greater perspective. No
wonder why homes with swimming pools that are on resell have higher resale
values compared to those that do not have pools.
For this reason, more and more people are now opting
to build or refurbish swimming pools in their homes. In a survey, 8 out of 10
respondents have stated their desire to build or renovate swimming pools.
However, the process could be very tricky and the
financing ability of the homeowner is such a big issue. Building a swimming
pool is not such an easy task and requires a lot of tools, materials, and labor
force. Hence, there is usually a big amount of money involved.
If you cannot afford to pay the expenses in building
or renovating a swimming pool, it is best that you get swimming pool loans.
Swimming pool loans fall under the category of home
improvement loans. These loans are usually used to add value to a certain
house. Hence, the resale value becomes higher and more profitable for resell.
However, getting a swimming pool loan is not that
easy. Loans are one of the most sensitive money matters and must be dealt with
accordingly. Hence, it is important to know the basic rules and tips in getting
swimming pool loans to avoid financial problems.
Here is what you need to do:
1. Do your homework
Remember that not all swimming pool loans are created
equal. Most of all, loan quotes are not provided in the same context in all
situations and in all companies. It is imperative that you personally get in
touch with your contractor and ask them the possible quotes for the
construction or renovation of swimming pools.
The point here is to get as many quotes as possible.
This will make your budgeting easier to deal with. It gives you a generalized
scenario of the market. In this way, you will be able to deal with the matters
as professionally as possible.
Also, it is imperative that you know the lending
institution that you will approach. Check on the background information of the
company. How long have they been on the business? Are they worth your time and
2. Look for lower interest rates
Most private lenders that can provide you swimming
pool loans, their interest rates can be astronomical. When opting for lower
interest rates, financial experts suggest that you compare the interest rate
and swimming pool loan tenure offered by your lending company.
The concept is that if your loan is extended over a
longer period in years, then your monthly amortization is lower, but the
interest is higher.
3. Collateral matters
Most lending companies are particular with three main
factors before they can grant you with loans such as swimming pool loans.
Factors like the collateral, ability to pay, and the borrower's character.
Among the different lending companies, banks are the
ones that are very particular with character. Some may have the capacity to pay
but many may not be of good character. Collateral is another issue. Not any lot
will do. The location has to be considered.
4. Read the fine print
An important reminder of all: Read the fine print
before signing. Things to look out for: high interest rates, pre-payment
penalties, and balloon payments. These are all adding up to bury you further
5. Capacity to pay the loan
Experts suggest that you borrow money only if you have
plans of selling the house together with the swimming pool of course in the
future. This is because home improvements such as swimming pools add up to the
resale value of the whole estate.
So before you get a swimming pool loan, make an
assessment first. If your cash flow or even your future profit taken from the
resale value of the house is higher than the interest rate, then go ahead and
So the point in swimming pool loans is to know exactly
where you are heading. You do not just borrow because you need a swimming pool.
You should also take into consideration its future stake.
6. If possible find a broker with experience in home
improvement loans and swimming pool financing. A bank equity loan is not the
same as a this type of loan and will almost certainly cost you more.