Best Roof Financing Options

Replacing or repairing a roof can be one of the largest expenses a homeowner faces, with costs rising up to tens of thousands of dollars or more depending on where you live and what materials you’re using. 

Fortunately, a range of personal loan providers and home improvement financing options are available to help spread out the cost.

How to Choose the Right Financing Option

Before committing to one option or the other, it’s best that you keep in mind certain key things.

Plan Your Budget

As we noted earlier, a roof replacement or repair project can be a large investment, which is why it’s essential to get estimates for it and decide how much you actually need to finance from outside sources. 

There can be a lot of unexpected costs with projects like these, so make sure to include additional contingency funds in your plan, as you don’t want to be lacking funds in your account after you’ve already started redoing your roof.

Check Your Credit Score

All types of loans come with credit score requirements, and these are not different.

As is the case with all types of loans, you will run into different credit score requirements with different lenders. For roof financing and in general, the higher your credit score rating, the better rates you can get.

This means that if you are above the 680 range, you can get the best possible deals, but you may be eligible for a loan even if you are below this rating.

Still, if your credit rating is below 600, the rates can be overbearing and you might reconsider taking out a loan if the amount of funds you need for your project can put a significant burden on your finances.

Compare Different Offers

If you are comfortable with the range of rates you might get with your credit rating, still make sure to do the preapproval process with as many lenders as you can. The offers you receive will vary and perhaps you’ll find the best one with a lender you might not have considered as your top choice at the start.

Also, some names on our list function as lending marketplaces, which simplifies this comparison process as you’ll get multiple offers through one marketplace.

Consider Total Costs and Fees

The main monthly loan payment is not the only cost to keep in mind before committing to a loan. You have to compare the APR, loan term lengths and any additional fees that lenders may impose, and calculate the total cost of it all over the length of your potential loan.

For instance, some lenders charge origination fees or late payment fees, while others impose prepayment penalties. Whatever the case is, always try to go with the option with minimal or no fees at all.