Financing a Pool & Other Home Improvements

Questions about how to finance a swimming pool and other backyard improvements don’t have to be an awkward experiencewhen you know how credit scores & FICO scores work.

Pool builders often wonder what the best way to originate and answer questions when a buyer is interested in financing their swimming pool and other outdoor home improvement projects. The answer to this question is always a little more complicated than it seems.

On one hand, you as the builder want to be as knowledgeable and helpful as possible. Also, it can be advantageous to quote a low monthly payment rather than a high project cost.

On the other hand, you don’t want to give out incorrect information or be perceived as giving a “bait and switch” offer. It’s a very similar situation to what companies who offer swimming pool financing deal with daily from borrowers with questions about pools.

It’s common for people seeking financing to ask about average prices or whether the project seems too expensive, etc. Greg Powell, President of Viking Capital, has worked with pool builders for over 25 years and explained why the only answer to questions along that line is “you should discuss that with your builder”.

“The reason we take this position is to make sure we don’t muddy the waters or give out incorrect information that makes the builder’s job selling the project more difficult. The same applies on the

builder’s end when buyers want to know rates, terms, and payments. These questions are truly impossible to answer correctly without having their credit report in your hands and full knowledge of underwriting,” said Powell.

We live in a world today where everyone believes that they know “my credit score”. They see it on apps, on credit card statements and more. The problem is, that individuals have A LOT of credit scores. There are three major reports, but each has several versions. The scores can vary by 100 points or more depending on which report the lender is using. Also, some loan programs allow for co-borrowers and co-signers which may enable borrowers to have more and better loan options.

This conversation about financing can be very awkward for a builder and it could make matters worse. The worst thing is to assume their score is what they say, guess at a rate and term, and take a stab at a payment.

When that borrower then applies for financing, they have a pre-set idea of what rate and payment they are looking at. When credit comes back and it’s not a 780, but rather a 724, that borrower is in for a shock. It would be just like us telling borrowers that an average pool is 50-75k.

It’s such a wild guess that it’s better not being mentioned. Viking Capital offers builders a quick and reliable alternative to offer their customers. When customers apply with us they are contacted by a loan consultant within a few hours for a free loan consultation. It won’t hurt their credit and there is no obligation to move forward.

During this consultation, they are given pool loan options specific to their needs and qualifications. Yes, they’ve waited a day or so, but the loan options they got are accurate and exact. The guesswork has been removed from the equation and the customer will be ready to meet with their builder with a confirmed budget.