Investing in a new roof is one of the best things you can do for your home. It not only boosts your home’s protection against the elements but also increases the overall value of your property. Like any other home improvement project, however, it is a major financial commitment. Covering its upfront costs isn’t something that you can easily do right away because it requires thorough planning and budgeting.
In today’s blog, local roofing and home remodeling contractor Precision Remodeling Solutions discusses the three things you need to know about financing a new roof.
1. Financing Options to Choose From
Whether your roof is nearing the end of its life span or has suffered severe damage because of inclement weather, there are several situations in which a roof repair or replacement becomes vital. The total cost of a certain roofing project depends not just on the roof type but also on other factors like the current market conditions and the local climate. Because of the steepness of the prices and the additional repair costs, many homeowners are cautious about spending significant amounts of money in one go.
Financing a new roof might seem an intimidating task to handle, but know that there are numerous options available to help you tackle your roofing project without any worries. From cash to home equity loans, you are sure to find the best financing choice for your situation. We’ve outlined some of the important ones below:
The simplest way to finance a new roof is to utilize cash from your savings. If your roof is a few years away from the end of its natural life span, it is a good idea to prepare for it down the road by allocating a certain amount. You can try to adjust your budget over a specific period to save up enough money to cover the costs of your roof replacement. Using your own money to pay for this project means that you won’t have to deal with third-party lenders or wait for a loan to be approved.
- Credit Card
If your roof requires immediate repairs following a severe storm but you don’t have enough cash to cover for the entire cost, you can rely on credit cards to get your project started. Be sure to read the fine print before you fund the roof repair. Also, avoid using a credit card that has high-interest rates; doing otherwise might end up costing you more in the long run.
- Personal Loans
If cash isn’t enough or your credit score is not that decent, you can take out a personal loan with your bank, credit union, or a reputable online lender. Such loans provide convenience because they have zero equity while allowing you to gain access to your much-needed roofing funds right away. Repayment schedules and interest rates tend to vary depending on your chosen lender. Conduct enough research on lenders that can give you the best reviews, fair frees, and interest rates that fit your situation.
- Home Equity Loan
Another type of loan you can secure for your roofing project is a home equity loan. With your home as collateral, you can receive a lump sum loan that you can pay back over a given period of time. Most major banks offer this type of loan, which allows you to borrow up to 85% of the total value of your residential property. In addition to a home equity loan, you may also be offered a home equity line of credit or HELOC. Here, you won’t receive the lump sum loan at once but it allows you to pay as you go. It’s a perfect financing solution if you are sure how much your project will cost.
- Company Financing
When searching for the best contractor for your roofing project, you might come across one that offers financing options. You can find roofing contractors that partner with banks, lenders, and other financial institutions to help manage the financing of their customers’ roof repair or replacement. It is like securing a loan from a bank, but with fewer hassles on your end.
Any of these financing options can help secure large amounts of money for your roof repair or replacement, but there are other ways to achieve savings for your project. It can be in the form of federal tax credits, state or local rebates, or discounts or one-off deals from local roofing providers. With a bit of research, you can find the best option that will help reduce a few hundred dollars from your total costs.
2. Storm Chasers and Fraud
Of course, when it comes to financing your roof repair or replacement, you have to be wary of scams that leave you with problems costing thousands of dollars to fix the right way. Understanding the signs to point to these unscrupulous schemes is not only helpful on your end but also beneficial for reputable roofing companies providing good, honest service.
Be knowledgeable about the so-called “storm chasers” who are only trying to scam you out of your money. They travel around the country, following the path of storms and looking for unsuspecting homeowners to exploit. After the storm has passed and wreaked havoc in your area, they go around knocking on doors and offering free roof inspections.
Storm chasers tend to convince homeowners about the urgency of the situation, especially if the roof sustained significant damage. Their propositions might sound promising, but more often than not, they turn in substandard work that’s unlikely to last long. As soon as a homeowner realizes what happened, the scammers have already moved out of your location looking for their next victims. Because they don’t have licenses or insurances to show for, you don’t have any guarantees covering their supposed “quality” of work. Worse, they left your home more vulnerable than ever.
3. Roofing Estimates
The best way to avoid scammers is to work with a reliable roofing contractor that can provide every advantage when it comes to your roof repair or replacement project. Before you hire one, you must do some vetting by learning if they carry insurance or operate their business with an updated license. It’s a huge plus if they are certified by the top roofing manufacturers. What separates them apart from storm chasers is that they have a physical location and a contact number you can call.
However, there are so many of them in your local area, it might be tough to pick which one is the best for your situation. Aside from the ones mentioned above, be sure to obtain estimates from several different contractors. This way, you can determine what should be the fair amount for your roofing project. See to it that each one is broken down into categories, including the costs for both materials and labor as well as additional charges like old roof removal and disposal.
From there, you can calculate how much money you can put toward your roofing project after paying other bills. You can then consider which of the aforementioned financing options work best for your budget. It also helps if one of the contractors in your shortlist provides roof financing for your convenience.
At Precision Remodeling Solutions, we want to help you with your roofing project and other home improvements with the assistance of our financial services partners. We make the process simple with limited information needed and can have a financing approval within minutes. We accept credit cards, offer loans with lower credit ratings, and provide military discounts on all services, to name a few.
Learn more about our financing options by calling (215) 360-5857. You may also fill out our contact form to schedule a free consultation and estimate.