Tips for Financing a Swimming Pool

by Pool Builders on 06-13-2007 in Articles

Not to worry.

Financing your new pool is simply a matter of doing a little homework and finding a lender that understands the unique needs and benefits of a swimming pool addition. If you follow these simple financing tips, you'll soon understand that very little is different about financing a pool when compared to other major investments like cars and homes. And that includes potential tax advantages you may not have considered.

Most lenders understand that a swimming pool is an investment that will probably add value to your property.

o Many lenders will consider long-term mortgages as a viable lending option, and some will finance based on the estimated value of your property AFTER you've made the improvement.

Do your homework and seek out a lender that will work with you to create advantageous financing for your investment.

That means you need to do the same kind of homework you did when you first purchased the property.

o Seek out a lender that has experience in financing swimming pools--one that understands the unique nature of pool installation.

Ideally, your lender should have an expedited approval process that allows you to move quickly with construction. In addition, find a lender who will work from a recent tax assessment or home purchase price as a basis for determining your home's additional value once the pool has been installed. A full-property appraisal could add hundreds of dollars to your loan costs, and take up to a month to complete.

o Look for financing that fits your specific situation. Some pool buyers want a short term loan with higher payments. Others want longer terms with lower payments. Some want to finance the pool only, and still others prefer to consolidate debt with a pool loan to free up additional cash.

The point? It's your pool and your financial plan. Find a lender that will work within that plan to offer swimming pool financing that's truly right for you. And don't forget to ask about potential tax breaks involved with many financing options. Oftentimes the interest on the pool loan will be tax deductible, just like your home mortgage interest.

Swimming pool financing is out there for those willing to invest a small amount of time in seeking out the perfect lender. If you do your homework and ask the right questions, that first, soul-cleansing refreshing dip into your new swimming pool will be all the more enjoyable.

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