Financing your window or siding project.
If you have the cash to get your windows or siding replaced, great! If you are like most of us though, you probably have to find some other way to pay for the work to be done. Financing is an incredibly powerful and useful tool when managed properly. The way financing works is typically full of trade off's, a balancing act of rates, terms, fees, amortization methods, promotions, and penalties. Generally where one part of a loan is attractive, one of the other parts can be hideous!
Choosing the wrong financing or not understanding the full picture can very well possibly end up costing you thousands more. Unfortunately, financing is very complex and can be very difficult to fully understand. Most people who try to look for advice are generally dissapointed because all that usually turns up is someone who is trying to steer them to their own loan package!
We can help you understand whats out there and available, and we can also tell you about special promotial financing that some dealers have.
Sources of financing
Your local bank or credit union is where most people end up going to get money for their home improvement. There are also a large number of people who use the contractor or the remodeling company to arrange financing for them as well. Some people also borrow money from family, or they take advantage of government grants that are some times available.
Credit Worthiness
As you surely are aware, the credit markets have been severely shaken up over the last couple years, and the options available have changed tremendously. You will have less options available to you if your credit is not excellent. Even if your credit is around 700 FICO score, you still may find that some places will turn you down. Do not give up hope though, there are plenty of lending resources out there that will help most anyone out.
We always strive to find the best deals for anyone looking to get windows or siding, but we also try to look out for the best deals in financing too! We understand the complexity and the most common thoughts that go into home owners heads when they are thinking about how to finance their job. If your credit score is below 600, you may want to check out your local credit union. Many credit unions will let you join them if you can show you live, work, or shop in their local area. Keep in mind that credit unions are not banks, they are not their to make a profit, but to just provide resources to the community, so they tend to have lower rates, and more focused service. Many credit unions will give just about anyone that has a steady job and a steady income a loan.
Financing through the Dealer/Contractor
Dealer financing is one of the biggest tools a remodeling company has available. Often times home owners are unaware of the financing available, or they are too confused by it to really go to their bank and take out a loan. Financing through the dealer is convienent, and sometimes actually a better choice then a local institution.
Most contractors finance their home improvement jobs through one of the following lenders; GE Home Design, American General or Wells Fargo. Each of these lenders prescreen the dealers and ensure they are profitable, and unlikely to go out of business anytime soon. Although they do normally state that they make sure the company is reputable, we have seen often times a very unscrupulous remodeling company accepted to offer these companies financing.
In order to make it worth using the dealers financing, we generally recommend taking advantage of the "promotional" incentives these lenders typically have available. Our financing research department here at ballpark-estimate.com continuously stays ahead of the promotions available, and can clue you in on incentives that many times the dealers don't even know about! Using our help, we many times will be able to convince the dealer to offer you these little known incentives;
- up to five years with no payment (3, 6, 12, 24, 36, 60 month deferrals)
- zero interest loans up to 1 year
- super low minimum payments (as low as $63/month on $5000 worth of work!)
- unsecured APR as low as 7.99%
The dealers often do not tell you about the real juicy incentives, because it costs them money out of their advertising accounts to do it. We know how to show them ways to avoid that, which in turn gets you incredible offers you would never be able to get on your own.
A great reason to consider dealer arranged financing, is that it allows you to get the job done while you decide how you want to finally pay for the project. We often advise customers who are looking to finance a siding job, to use the dealer financing if possible, and then get the work done so that when they approach their own bank for an equity line, the appraisal will come in much higher. It is better to maximize your homes value before you borrow against it, not to borrow the existing equity and then improve it afterwards.
Please make sure that you let us update you on the financing options before you talk to the dealer, because often times if you mention certain offers, they will build the fees into their price and you will just end up paying more.
Contact us as soon as possible so we can help you out!