One of the most critical investments you’ll ever make for your home is financing a roof replacement. A whole new roof is a huge commitment, and covering the cost upfront is often a challenge for many homeowners. Fortunately, there are plenty of financing options to ensure you don’t break the bank to get a roof replacement. Point-of-sale financing by roofing companies is one way many homeowners get a brand new roof when it can’t be put off any longer. In this article, we look at how to know if and when you need to obtain financing and how the process works.
How to Know if You Need to Finance Roof
The first step is to ask if roof financing makes sense for you. Do you have adequate money and resources for the roof replacement? Have you been preparing for the project for the past five years?
You can’t put off getting a roof replacement when your roof has deteriorated beyond regular repair, exposing parts of your home’s interior to external elements. Moreover, if your roof is between 15 and 20 years old, you may need to begin thinking about a roof replacement. Have a professional roofing contractor inspect your roof for any damages and give a report on how many years it has left.
The decision to opt for a financing option will depend on your personal financial situation and whether or not you’ve made the necessary preparations to cut down on costs. The good news is you can begin planning out your budget in advance so when the time comes for a replacement you won’t scramble to pay the bills. You can start by sourcing all the necessary materials such as shingles, gutters, etc. Always work with a professional roofer to help you craft an accurate estimate and recommend the best materials.
How Roof Financing Works
So, how does roof financing work? Liaise with your roofing contractor to discuss your financing options. Reputable roofing companies can almost instantly evaluate your eligibility for financing and pre-approve your application on their website. Alternatively, they can approve your application during the estimate. Depending on the financing partner they’re working with, you can get an answer in a minute, but sometimes it could take a few days.
With a financing option repayable in 12 months, you can keep your money longer, giving you time to get creative with how you pay off the loan. Again, roof replacement financing can be beneficial to anyone – you don’t have to be short on cash to go for it.
Eligibility Factors for Roofing Financing
When you apply for financing through your roofing contractor’s website, lending institutions will often look at three factors to determine whether you qualify for financing or not. They include:
- Your credit score: Since most lenders don’t use any home equity, they may look at your credit score to see if you’ll be able to pay back the loan. In most cases, you’ll need a credit score of between 500 and 640 to qualify, but this may differ from lender to lender.
- Your income: Your monthly income will indicate whether you’ll be able to afford installment payments every month. After prequalification, you may need to submit some form of income verification, for instance, a W-2 form.
- Your current debt: If you already have numerous debts, it may be difficult to afford monthly installments. Lenders will look at the ratio of your debt to your current income to make an approval decision.
Benefits of Point-of-sale Financing
Point-of-sale financing allows you to apply and qualify for a loan straight from a roofing contractor’s website. You can get pre-approved quotes from multiple lenders, allowing you to compare rates and fees and chose the best deal. Once the application is approved, you should get the money in as soon as one day.
Point-of-sale financing is an ideal option for homeowners who want more flexibility with payments and don’t want to have to apply with mainstream lenders such as banks. Moreover, companies who provide financing for roof replacements can often offer special promotions to surpass banks and other direct lenders. Because of volume lending, these lenders are able to negotiate special rates and pass the benefits down to their clients.
Get Financing with AIC Roofing & Construction
Are you planning to replace your roof soon? AIC Roofing & Construction has been helping homeowners in Central Kentucky and surrounding areas to finance various roofing projects. Our growing customer base and exemplary workmanship have helped us gain support from local and national lenders offering some of the best interest rates. Contact us today for any inquiries about our roof replacement financing options.
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