Getting a swimming pool loan is similar to getting any other kind of personal loan. Once you’ve gathered quotes from contractors, you’re ready to start the loan application process.
Determine your budget
Keep monthly loan payments in mind as you decide what kind of pool you’d like and how much it might cost. If you’re borrowing money to finance the project, it’s important to ensure that the monthly cost fits into your budget. You don’t want to wind up underwater if you miss payments.
Check your credit score
Your credit score helps track your credit history for potential lenders. A higher score can offer access to more loans and better rates, and a lender will check your score when you apply for a loan. You can check your credit score for free at LendingTree to understand where you stand as you start the application process.
Prequalify for loans
Think of prequalification as getting your feet wet without jumping all the way into the deep end. Some lenders allow you to prequalify for a loan, which gives you an estimated APR and monthly payment with a soft credit check — avoiding a hard credit check until you’re ready to apply. Some lenders don’t allow prequalification, so you wouldn’t know the specific terms before applying.
Once you’ve prequalified for a few loans, compare your options to see which has the best terms for your needs. Consider factors like APR, term length, origination fees and credit score requirements when deciding which loan is best for your circumstances.
Ultimately, the interest you’ll have to pay may be the most important number — a lower interest rate can save you a lot of money over the life of the loan. To get the best rates, you’ll need a strong credit score. It might be worth delaying your project and working to improve your credit score before applying.
Apply for your loan
The final step is to submit a formal loan application to a lender. In addition to basic information like your ID and Social Security number, you may also need to provide proof of income or employment, bank account information and documentation for your other debts. The lender will pull your credit report before making a final loan decision.
If your application is approved, you’ll sign a loan contract and receive your funds in the form of a lump sum. If your request is denied, here are ways to boost your odds of approval next time.