Blog Post
10 Steps Towards Smart Roof Financing
christine • August 17, 2020
If you do need a new roof and roof financing to make that happen, we strongly suggest you follow the steps below in an effort to spend as little as you can on a great addition to your home.
YOUR ROOFING COMPANY SHOULD OFFER FINANCING - BUT BEFORE YOU CALL ONE...
1. Assess Your Situation
Before you start calling roofers and getting estimates, it's important to calibrate your expectations and assess your needs. The three primary factors that determine the cost of a new roof are the size and complexity of your existing roof, your geographic location, and the material you choose for your new roof. If you have a large home, live far from a metropolitan area, or want a Spanish-style roof, you can expect to pay more, although local companies can often find cost-effective solutions in a wide variety of circumstances.
Additionally, you may be replacing your roof for a specific purpose, in which case you should make sure you know exactly how to relate your problem to a potential roofer and ensure that problem is resolved.
2. Shop Around
As you may have assumed, it is best to get more than one or two estimates before you make a decision about which roofer to hire. Fortunately, most roofers, such as Austin Roofing and Construction, will be happy to come out to your home and provide an estimate for free. Therefore, you should have no problem getting a few different perspectives on what exactly your roof will require.
3. Check In With Your Insurance Company
4. Put Aside As Much Cash as You Can
Once you have a realistic view of your needs, a few estimates in mind, and any possible contribution from your insurance company forthcoming, you can conduct a more thorough assessment of your own finances. As a general rule, you should try to pay in cash if that is possible for you. This practice saves you a lot of money in interest in the long-term, even though paying upfront can pinch your finances for a few months.
Even if you can't pay for your roof out-of-pocket, you should try to put as much down as you can in advance. In tandem with smart roof financing options, a large down-payment will leave you exposed to as little additional expense as is possible.
5. Working With a Trusted Roofer
If you are struggling to find a lender willing to finance your new roof, don't worry. You can always just ask whichever roofing company you end up employing. Roofing companies often have pre-existing relationships with lenders familiar with that company's operation. Your roofer may be able to suggest lenders they have worked with before. Often, the roofing company will handle the administrative burden of financing if you work with them.
6. Bundle the Services You Finance
Many companies that roof houses also provide other construction services. If you have to finance your roof anyway, it may be wise to have the same company remodel or repair whatever else is ailing your house. By having the same company perform all the relevant tasks around your home, you can cover all the larger expenses through one loan, often acquired through the company performing the services.
Including all necessary construction in one loan decreases the amount you will ultimately owe in two different ways. First of all, your principle will likely decrease. If you do a roof, a kitchen remodel, and a new bathroom, the company may take a little of the sticker price. Furthermore, if one loan covers everything, you are not subject to the additional administrative fees associated with multiple loans.
7. Home Equity Loans & Refinancing Options
Leveraging the equity you hold in your home for the sake of improving that home, and thereby increasing the resale value, is a great way to finance your new roof without causing a disruption in your short-term financing. The rates on home equity loans are extremely favorable and you can generally secure one with minimal hassle from the same bank you got your mortgage from.
Refinancing is slightly different than taking a home equity loan, but both strategies use the amount you have already invested in your home to improve your home. When you refinance, you essentially replace your old mortgage with a new one while pocketing the money you have accrued by paying against the principle of your loan with your monthly mortgage payments.
8. Personal Loans
Personal loans are often a strong roof financing option for new homeowners or those with little equity in their current home for other, ancillary reasons. If your credit is good and you can easily substantiate regular income on a loan application, personal loans shouldn't be too hard to find. As you would with potential roofers, shop around a bit and find a deal. Credit unions are particularly good at finding great rates on personal loans for their members.
The reason we put personal loans beneath home equity loans on our list is based strictly on interest rates. Because a home equity loan is secured by your home, the interest rates are much lower as the bank has property to guarantee the value of the loan. On the other hand, most personal loans are granted as unsecured debt, there is no collateral, so the bank charges more in interest to protect against default.
9. FHA Title 1 Loans
At this juncture, many homeowners with financial constraints who don't qualify for most loans begin to feel hopeless. It doesn't have to be so. In fact, the federal government seeks to empower low-income and financially constrained homeowners to improve their dwellings and ultimately increase property values in their neighborhood through the FHA Title 1 loan program.
To qualify for a home improvement loan through the Federal Housing Authority, you must either belong to a certain tax bracket or live in a predetermined portion of your metropolitan area or rural county. These loans offer borrowers very reasonable rates and minimal upfront costs. If you are in a tough spot, this is the best way to fund your new roof.
10. Credit Cards
You should only use a credit card to fund a roof if you have no other options. The interest rates on your credit card balance are simply atrocious: well above what a bank would charge you on a loan of any other variety. However, if you really have no other way to swing it, you can pay as much in cash as possible and have your roofer charge the rest to your credit card. Then, it's up to you to pay absolutely as much as you can scrounge up, especially in the first few months thereafter, to keep your credit limit in check and make sure your credit score doesn't plummet.
Conclusion
1. Assess Your Situation
Before you start calling roofers and getting estimates, it's important to calibrate your expectations and assess your needs. The three primary factors that determine the cost of a new roof are the size and complexity of your existing roof, your geographic location, and the material you choose for your new roof. If you have a large home, live far from a metropolitan area, or want a Spanish-style roof, you can expect to pay more, although local companies can often find cost-effective solutions in a wide variety of circumstances.
Additionally, you may be replacing your roof for a specific purpose, in which case you should make sure you know exactly how to relate your problem to a potential roofer and ensure that problem is resolved.
2. Shop Around
As you may have assumed, it is best to get more than one or two estimates before you make a decision about which roofer to hire. Fortunately, most roofers, such as Austin Roofing and Construction, will be happy to come out to your home and provide an estimate for free. Therefore, you should have no problem getting a few different perspectives on what exactly your roof will require.
You may be tempted to go with the lowest available estimate after a search through the roofers available in your area. This is rarely the best idea. Lower estimates are often an indication that the actual price will be higher: low-balling the cost of materials is a standard practice among contractors who want to bait customers into a commitment. Instead, prefer the potential roofer who is most transparent with you about potential roadblocks and costs. It will likely save you money.
Want a roof replacement estimate in under 2 minutes? CLICK HERE https://www.austinroofingandconstruction.com/roof-pricing
3. Check In With Your Insurance Company
Frankly, this step is a bit of long-shot, but, given the potential return, it is worth a phone call. Most homeowner's insurance plans will pay for a repair to your roof in the event of an unexpected leak that jeopardizes the value of your home, but not for a new roof altogether. For some, however, homeowner's insurance policies are a bit more helpful.
Some insurers, especially those who work in areas particularly vulnerable to storms with high-winds, may see value in subsidizing your roof as it ultimately protects their own investment in the durability of your home. At the very least, you should check. Even if you don't get a direct contribution from your insurance company, you may still benefit from a new roof. Many insurers will lower your monthly premiums when they know your home is safe beneath a new, high-quality roof.
4. Put Aside As Much Cash as You Can
Once you have a realistic view of your needs, a few estimates in mind, and any possible contribution from your insurance company forthcoming, you can conduct a more thorough assessment of your own finances. As a general rule, you should try to pay in cash if that is possible for you. This practice saves you a lot of money in interest in the long-term, even though paying upfront can pinch your finances for a few months.
Even if you can't pay for your roof out-of-pocket, you should try to put as much down as you can in advance. In tandem with smart roof financing options, a large down-payment will leave you exposed to as little additional expense as is possible.
5. Working With a Trusted Roofer
If you are struggling to find a lender willing to finance your new roof, don't worry. You can always just ask whichever roofing company you end up employing. Roofing companies often have pre-existing relationships with lenders familiar with that company's operation. Your roofer may be able to suggest lenders they have worked with before. Often, the roofing company will handle the administrative burden of financing if you work with them.
6. Bundle the Services You Finance
Many companies that roof houses also provide other construction services. If you have to finance your roof anyway, it may be wise to have the same company remodel or repair whatever else is ailing your house. By having the same company perform all the relevant tasks around your home, you can cover all the larger expenses through one loan, often acquired through the company performing the services.
Including all necessary construction in one loan decreases the amount you will ultimately owe in two different ways. First of all, your principle will likely decrease. If you do a roof, a kitchen remodel, and a new bathroom, the company may take a little of the sticker price. Furthermore, if one loan covers everything, you are not subject to the additional administrative fees associated with multiple loans.
7. Home Equity Loans & Refinancing Options
Leveraging the equity you hold in your home for the sake of improving that home, and thereby increasing the resale value, is a great way to finance your new roof without causing a disruption in your short-term financing. The rates on home equity loans are extremely favorable and you can generally secure one with minimal hassle from the same bank you got your mortgage from.
Refinancing is slightly different than taking a home equity loan, but both strategies use the amount you have already invested in your home to improve your home. When you refinance, you essentially replace your old mortgage with a new one while pocketing the money you have accrued by paying against the principle of your loan with your monthly mortgage payments.
8. Personal Loans
Personal loans are often a strong roof financing option for new homeowners or those with little equity in their current home for other, ancillary reasons. If your credit is good and you can easily substantiate regular income on a loan application, personal loans shouldn't be too hard to find. As you would with potential roofers, shop around a bit and find a deal. Credit unions are particularly good at finding great rates on personal loans for their members.
The reason we put personal loans beneath home equity loans on our list is based strictly on interest rates. Because a home equity loan is secured by your home, the interest rates are much lower as the bank has property to guarantee the value of the loan. On the other hand, most personal loans are granted as unsecured debt, there is no collateral, so the bank charges more in interest to protect against default.
9. FHA Title 1 Loans
At this juncture, many homeowners with financial constraints who don't qualify for most loans begin to feel hopeless. It doesn't have to be so. In fact, the federal government seeks to empower low-income and financially constrained homeowners to improve their dwellings and ultimately increase property values in their neighborhood through the FHA Title 1 loan program.
To qualify for a home improvement loan through the Federal Housing Authority, you must either belong to a certain tax bracket or live in a predetermined portion of your metropolitan area or rural county. These loans offer borrowers very reasonable rates and minimal upfront costs. If you are in a tough spot, this is the best way to fund your new roof.
10. Credit Cards
You should only use a credit card to fund a roof if you have no other options. The interest rates on your credit card balance are simply atrocious: well above what a bank would charge you on a loan of any other variety. However, if you really have no other way to swing it, you can pay as much in cash as possible and have your roofer charge the rest to your credit card. Then, it's up to you to pay absolutely as much as you can scrounge up, especially in the first few months thereafter, to keep your credit limit in check and make sure your credit score doesn't plummet.
Conclusion
Call Austin Roofing and Construction today 512-629-4949. We provide helpful suggestions and can find a way to work with whatever financing option works best for you. Our loans are for 2 to 15 years with low monthly payments. No pre-payment penalties!
We can typically get everyone approved, so give us a call even if you think you're not eligible. You deserve a good roof over your head!
The National Centers for Environmental Information reports that Texas experienced 190 confirmed weather disaster events from 1980 to 2024. The damage from these events, including tropical cyclones and severe storms, exceeded $1 billion in each event. With Austin's unpredictable weather, having a strong, reliable roof is more important than ever. You need a roof that can withstand the extremes of Austin's climate. Whether it's intense heat, heavy rain, or high winds, your roof should offer protection from these harsh conditions. That's where professional roof installation in Austin comes into play. It ensures your roof is built to last and capable of handling the challenges of the local climate. Learn about the key steps and materials involved in roof installation in Austin to make the best decision for your home.
Metal roofs have increased in popularity in recent years. While they tend to be more expensive than traditional asphalt shingles, they can last twice as long (or longer!). Many people wonder, "Can you paint a metal roof ?" The short answer is, yes. However, there are many factors to take into consideration. This article covers what those are, along with some metal roof painting tips, instructions, and maintenance advice. Keep reading to learn more.
According to Consumer Affairs, the market size for U.S. roofing contractors is more than $56 billion . The roof of a building is one of its most important components. It provides protection from the elements, safeguarding both your home's infrastructure and everything in it, so durability is imperative. For this reason, more people are considering a metal roof for their home or business. How long does a metal roof last? Some versions can hold up and perform well for a lifetime--100 years or more. This article explains the factors that contribute to metal roof longevity. Keep reading to understand how and why they work, so you can determine if it is the right option for you.
Metal roofs have increased dramatically in popularity over the last few decades. According to research by The Freedonia Group, that is a trend that is likely to continue. The report says that metal roofing will have the most rapid growth across all categories through 2026. This is undoubtedly due to the many fantastic benefits these roofs afford. If you are looking for a metal roof in Austin, TX, keep reading. This article explains why more homeowners prefer this material. It will help you learn more about the many metal roof benefits and why it might be the right choice for your home or business.
While some US roofs can last for 50 years or more, this is only possible with appropriate maintenance. Choosing roofing professionals to patch up holes and replace missing shingles is critical for those looking to maximize their roof's lifespan. This is especially true in places like Austin that experience flooding and extreme heat. But exactly what is a roofing contractor and how can they help you? Read on to have roofing services explained in easy-to-understand terms!
Common causes of roof damage include a variety of environmental and structural factors. Here are the primary causes identified across multiple studies:
Your home is your sanctuary. It's a place of comfort and safety. But what happens when that safety is compromised? Specifically, what if your roof, the very thing that shields you from the elements, needs repair? In Austin, roof repair is not a matter to be taken lightly. The city's unique weather patterns can wreak havoc on your home's topmost layer.
America's construction boom is still going strong. According to an article from Construction Dive, project starts increased by 6% in the first eight months of 2024 compared to the same period the previous year. There are many benefits to this dynamic, but one downside is that there are many contractors to choose from. If you're trying to settle on a roofing professional, the choices may seem overwhelming. Fortunately, there are some roofing contractor qualifications that can help distinguish exceptional ones from the rest. One is the Master Elite Roofing Contractor status. What is a Master Elite Roofing Contractor? This article answers that question and explains the many benefits that hiring one can bring. Keep reading to determine if this arrangement is right for your home or business roofing project.
According to Fidelity Charitable, Austin is one of the most generous cities in the country. It is ranked second for granting frequency in the U.S. and has especially strong donor support for charities focused on hunger and homelessness. There are many different ways to give back to the community in Austin. However, there are a few that stand out in the crowded field. Below are organizations that we have supported in different ways this year. Keep reading to learn more about them.
How Roof Accessibility Affects Replacement Timelines
When planning a roof replacement, one crucial factor often overlooked is the accessibility of the roof. The ease or difficulty in accessing your roof can significantly influence how long the replacement process will take.