In many parts of the country, a pool enclosure is more than a mere convenience or luxury — it is a necessity. However, depending on the homeowner's budget, paying cash to have an enclosure installed might not be on the top of their budget priority list. Fortunately, there are pool enclosure financing options. If you plan to use this financing to cover the cost of your enclosure, learn more about what criteria might be involved.
One of the first things the lender will assess is your credit score. Unfortunately, there is not a credit score benchmark used, as you can have a low credit score and be approved, or a high credit score, and be denied depending on other factors included in your financial health. However, as a general rule, if you have a lot of late or missed payments, it is a good idea to address these issues before applying.
Depending on the terms of the financing, you may be required to put up collateral to support the loan. For example, if the loan for the enclosure is valued at $35,000, you may need to present collateral that is valued at least equal to this amount in the form of an asset, such as property. The lender will be able to tell you right away if they offer collateral or non-collateral financing.
Many lenders offer you the opportunity to set the payment terms for the loan. However, there are limits. For example, if the lender has a maximum term of 72 months, it means that you can stretch out the cost of the loan over 72 payments. It does not mean that you can request an 80-month term. To be approved, your terms must be within the confines of the lending company.
Income and Expenses
Your income and regular expenses might also be assessed. The reason for this step is that the lender wants to make sure you can afford to pay back the loan. For example, if your gross monthly income is $10,000, and your expenses are $3,500, this figure would show that you have more $6,000 leftover each month, for which some of it could go towards repaying the loan. Applicants with expenses too close to their total income may run into problems.
It is important to understand that each lender will have its requirements. For this reason, it is always a good idea to speak directly to your preferred lender to find out what you need to apply and be approved for the loan.