Homeowners choose home improvement projects to make their homes more valuable. However, some projects give the owners and their families a new source of entertainment. A swimming pool is an exceptional choice for families and offers the owner a great way to entertain their friends. Reviewing how to borrow equity to build a swimming pool helps the owner make sound choices about their home improvement projects.
Get an Estimate for the Swimming Pool Construction
Getting an estimate for the swimming pool construction shows the homeowner the total cost of supplies, labor, excavation, designing the pool, and the installation. If the homeowner wants exterior features around the pool, the cost of the project increases. When calculating the project costs, it is important for the homeowner to get more than one estimate. The construction project will require permits, inspections, and may lead to cost increases depending on any changes the property owner requests. A full estimate for the installation and any issues that could emerge during the project gives the homeowner a more accurate price for their swimming pool.
Establish if the Homeowner Qualifies
Establishing if the homeowner qualifies for a home equity loan or a home equity line of credit helps the lender determine how to help the property owner. Typically, the options require a credit score of no less than 620 and a debt-to-income ratio of no more than 50. The equity in the home must be at least 15%. The homeowner must have adequate income to cover the cost of the loan or line of credit. These are factors that the lender evaluates when approving or denying financing for the swimming pool construction project. To review more details about qualifying read Dustin Dimisa’s recent tweets now.
What to Expect From a HELOC or a Home Equity Loan
Homeowners have access to these two options when they have built up equity in their homes. The home equity loan is a one-time, lump-sum payment provided to the homeowner according to how much the owner wants to borrow. The home equity line of credit is similar to a credit card where the homeowner borrows money as they need it to pay for their home improvements.
What If the Costs Increase for the Installation?
When making a decision, the most vital element that the homeowner must consider is whether the cost of the project will increase. With a swimming pool construction, there isn’t a guarantee there won’t be some issues. When excavating the land for the pool, the contractor must avoid utility lines and avoid damaging the lines. If the property has too many trees at the construction site, the contractor will need to remove the trees and uproot the stumps. Homeowners who cannot get a guaranteed price for the complete installation might need the home equity line of credit just in case the costs increase.
Homeowners choose a swimming pool as a great way to improve their homes and get a great entertainment option for their families. A home equity loan or a HELOC is a great way to finance the swimming pool installation. Homeowners who want to learn more about these financing options can contact a lender right now.