Because Lyon Financial is as committed to consumer awareness as we are to customer service, we launched LyFi Pool School to make even more information accessible to anyone who wants to know everything possible about pool financing.
In this first in our series of LyFi Pool School installments, we’d like to provide an overview of the pool financing process. We’d also like to start off by saying we do it quite differently than anyone else. That is just one of the distinguishing characteristics you will find when working with Lyon Financial’s team of professionals.
Your FICO Score
You already know this number is the gateway to many things on your wish list: a home, a car, a backyard pool. While it is everyone’s responsibility to maintain their most optimum score, we like to help preserve that in any way we can.
We therefore suggest you be wary of those lenders who advertise that they are going to shop around on your behalf and get you the very best “deal” or “rate.” What most personal online lenders do is what’s called “shot gunning” your credit. They take your information and then blast it out to all their lenders. In turn, each one of those lenders will pull a credit report on you. This results in multiple hard inquiries, which could impact your credit score. And this is something which no one wants.
This practice is ultimately damaging to your credit. It also doesn’t assure you will be working with the right lender for your needs. It’s instead a shot in the dark. Lyon Financial looks at things in a completely distinct way.
- We personally review your application.
- After assessing your credit credentials, we evaluate which of our lenders would make the ideal fit. We then scrutinize the terms and conditions, so you are paired with the lender and program that suits both your qualifications and your requirements.
- You’ll receive notification of a conditional approval within 24 – 48 business hours.
- At this point we will request copies of your income verification documents including your previous year’s tax returns (if you are self-employed) or a W-2 and recent pay stubs (if you are a wage earner).
- When everything is finalized, you will receive a copy of the signed contract between you and your builder.
- Loan documents are then ordered and sent electronically.
- Once all of these are signed and returned to us, your builder is given a “clear to start” and construction can begin.
If you work with a financing company that subscribes to shot gunning your credit or participates in other less favorable practices, you will likely be left in the lurch. They tend to take their finder’s fee and move on. We instead offer a continuity of service where we will manage your every expectation. Your Lyon Financial account manager will take you from the first time you contact us to the first time you fill your pool.
What We Look for as Far as Credit Score
First off, Lyon Financial leads the industry in rates and terms. You’ll not find any company with the flexibility to offer what most homeowners seek. What we assess:
- Overall credit health by taking the entire picture into account.
- Debt-to-income (DTI) ratio which includes the loan amount being requested. (Typically, we like to see a DTI of 50 percent or less.) This benchmark bodes well for you as a borrower, because it helps to set your comfort threshold with your income versus what you owe out.
- We also search for any potential negatives like tax liens or bankruptcies.
Like any loan, borrowers with excellent credit histories will be offered the lowest interest rates. That interest rate is determined by your credit profile as well as the loan purpose, amount, and term. We leverage the expertise of Experian to obtain the history part of the puzzle, but our lenders may use any of the major credit reporting bureaus: Equifax, Experian, or TransUnion.
Most loan approvals are good for up to 150 days; this includes the time to complete the pool. We can extend for additional time as needed to complete the pool project, as long as no major changes to credit have been made.
Pool Loan Terms and Fees
Terms and fees are those aspects of a contract that can haunt you long after your digital signature has been transmitted. That’s why we adhere to full disclosure and make certain you understand exactly what you’re signing and that everything meets with your expectations.
If you have decided a backyard pool or other outdoor amenity is right for you and your family, you don’t want any structure or its financing to be an anchor around your neck. You want to feel free and be happy with your decision. You want to enjoy it! This is another reason:
- We offer the LONGEST terms in the industry
- We do not charge consulting fees
- We never impose prepayment penalties
How Your Pool Builder Gets Paid
This is another of the most commonly asked questions. We have honed this process to protect your best interests. First off, the builder is paid in stages based on the progress of the project.
While your contract will define the phases, the contractor is typically paid in four stages from excavation to the project’s completion.
These are just some of the reasons why clients refer us to their family and friends. At this point we have made pool installations possible for generations of families and their neighbors. That’s a whole lot of swimming, splashing, and backyard barbecues to count! All along we have continued to believe in this contribution we make to the lives of these families. We never forget we are in business to support you. It is a privilege.
Stay tuned for our next LyFi Pool School installment!
Providing pool and home improvement financing solutions since 1979, Lyon Financial loves backyard pools. We also love the difference we can make for your family by providing something that puts years of memories within reach. Call 877-754-5966 for more information about our personalized financing services.