Swimming Pool Financing

What are the pros and cons of deck financing?

PROS

• Immediate Enjoyment: Financing allows you to build your deck now and start enjoying it immediately, rather than waiting until you have saved enough funds.
• Flexible Payment Options: Financing provides flexibility in terms of payment options. You can choose a loan term and monthly payment that fits your budget.
• Preservation of Savings: By opting for financing, you can preserve your savings for emergencies or other financial goals, while still being able to enhance your outdoor living space.
• Potential Increase in Home Value: A well-designed and high-quality deck can potentially increase the value of your home, allowing you to recoup some of the costs when selling.

CONS

• Interest Charges: Financing a deck incurs interest charges, which can increase the overall cost of the project. It's important to consider the total cost of borrowing, including interest, when evaluating financing options.
• Debt Obligation: Taking on debt means having a monthly payment and a long-term obligation. You should ensure that you can comfortably manage the loan payments within your budget.
• Qualification Requirements: Some financing options may have specific qualification requirements, such as credit score, income verification, and debt-to-income ratio. Not meeting the lender's criteria may limit your options or result in higher interest rates.
• Potential Impact on Credit: Taking on new debt may impact your credit score. It's important to make payments on time and manage your debt responsibly to avoid any negative effects on your credit standing.
• Repayment Period: Depending on the financing option chosen, you may have a long repayment period. Consider the length of the loan term and how it fits into your financial plans.

How long do decks last?

If your deck is made from untreated wood it can last anywhere from 10 to 15 years, whereas a deck made from treated wood or a composite deck will last between 25 and 30 years. Some composite decks may even last as long as 50 years if they are meticulously installed and maintained.

How much does it cost to get a deck installed?

The cost of getting a deck installed can range from $15 to $35 per square foot or more. This estimate typically includes materials, labor, and basic features but may not include additional elements like permits, site preparation, or specialized design features.

To get a more accurate cost estimate for your specific deck project, it's recommended to consult with local deck contractors or obtain multiple quotes. They will be able to assess your requirements, provide a detailed breakdown of costs, and consider any site-specific factors that may impact the overall price.

How much does it cost to build your own deck?

You can expect it to cost you around 65% of what you would pay if you were to have a deck installed by a professional. (For example, if a deck costs $10,000 with a contractor, you may be able to DIY the deck for $6,500.)

You will find that a contractor will be able to find the materials at a lower cost, and they will be able to complete the project in a shorter time, so you will likely only be saving on labor costs.

Will a deck increase my home’s value?

One of the benefits of adding a deck is that it helps to increase your home’s value. In fact, according to the 2021 Remodeling Cost vs Value Report, a deck addition increased home value by 63.2% to 65.8%. It is worth noting that this added value will depend on how well you maintain your deck - a deteriorating deck will be seen as a liability, not an asset.

What credit score do I need to qualify for deck financing?

The specific credit score requirement to qualify for deck financing can vary depending on the lender and the type of financing you're seeking. Different lenders may have different credit score criteria and lending standards. In general, a higher credit score improves your chances of qualifying for favorable financing terms, such as lower interest rates and higher loan amounts.

While there is no universally set credit score requirement for deck financing, having a good to excellent credit score is typically beneficial. A FICO credit score of 670 or above is often considered good, while a score of 740 or higher is generally considered excellent. However, lenders may have their own credit score thresholds and criteria.

How to apply for a deck loan

Step 1: Research Lenders: Discover a world of possibilities by exploring reputable lenders who specialize in deck loans or personal loans for home improvements. Look for trusted banks, online lenders, and credit unions offering attractive financing options.

Step 2: Gather Documentation: Get organized by gathering the necessary documentation to support your loan application. This typically includes proof of income, identification, bank statements, and any additional documents required by the lender to assess your eligibility.

Step 3: Compare Loan Offers: Unlock the power of choice by requesting loan quotes from multiple lenders. Compare and contrast interest rates, loan terms, fees, and repayment options. Find the loan offer that aligns perfectly with your needs and financial goals.

Step 4: Submit Application: It's time to take action! Complete the loan application, whether it's a seamless online process or a personal visit to a lender's office. Pay attention to detail, ensuring all required fields are filled out accurately, and attach any supporting documents as requested.

Step 5: Review and Approval: Lenders will review your application, considering factors like your credit history, income, and overall financial stability. If approved, you'll receive an loan offer tailored just for you.

Step 6: Loan Acceptance: It's decision time! Take a moment to carefully review the loan offer, examining the interest rate, repayment schedule, and any associated fees. If the terms make you smile, accept the loan offer by signing the necessary documents and taking one step closer to your dream deck.

Step 7: Receive Funds: Celebrate as your dream deck becomes a reality. Once you've accepted the loan offer, the lender will swiftly disburse the funds to your designated account. Get ready to transform your outdoor space into a haven of relaxation and entertainment.