How To Finance a New Roof: Commonly Asked Questions
A brand new roof is a substantial investment, especially if your property in Cherry Hill, NJ is spacious. Before hiring experienced roofers for the job, it’s essential to carefully explore the different financing options and choose the right one for your situation. To find a way to finance your roof, it’s important to inform yourself by asking the right questions, understanding the common obstacles you can face, and knowing what credit score you need.
What are the most common roof financing problems?
The sad fact is that there are absolutely no guarantees that your endeavor for securing a line of financing for replacing your roof will transpire smoothly. In fact, it’s common to experience certain obstacles along the way which can seem insurmountable at first.
However, they’re anything but, and there’s a way around some of the most common issues you might encounter while working to secure insurance coverage for your new roof. The first step in overcoming problems is knowing what they are, so here are the most common issues you can face:
- Documentation: In order to secure a suitable line of financing for your new roof, the first problem most property owners encounter is incomplete documentation. Make sure to inquire about the documents you need before starting to assemble them and applying for financing.
- Absence of insurance coverage: Depending on your provider and the type of insurance you have, you might not be eligible for full or partial coverage for your new roof for several reasons. These can include damage due to regular wear and tear or the age of your roof.
- Amount of current debt: Finally, if you have a larger amount of debt to your name, it will be more difficult to secure affordable financing as the more debt you have the more difficult it is for the lender to approve a line of credit.
What credit score is needed for a roof?
If you’re planning on using a personal loan as a source of financing for your roof replacement, you’ll need a certain credit score to be eligible for it. The fact is that the better your credit score the more affordable rates you’ll end up paying.
Generally, you’ll need at least a credit score of 640 to qualify for a personal loan to finance your roof. However, nothing is set in stone and neither is this credit score for roof financing. You could be eligible for a line of credit even with a score as low as 500. However, that depends on your lender.
Can I use a home equity loan for a roof?
Yes, you can finance your new roof with a home equity loan if your homeowners’ insurance doesn’t cover the replacement. This type of loan allows you to secure the financing you need against the available equity you have in your home.
The available equity refers to the difference between the remaining balance you owe on your mortgage and the market value of your home. If the loan-to-value ratio is 85% or under, this could be a suitable option for financing your new roof.
Which among Cherry Hill, NJ’s roofers should I hire?
No roof can last forever, and neither can yours, not even with all the proper maintenance and repairs. As soon as you notice that your old roof can no longer do its primary function, it’s time to think about installing a new one. First, consider several financing options before choosing the most suitable one. Then, work on determining whether your insurance can cover the installation of a brand new roof.
If you need any assistance with all that, you can turn to Nu Look Home Design. Not only will we install your asphalt roof per the highest industry standards, but we’ll also assist you in finding the best way to pay for it. We operate across the entire area in and near Cherry Hill, NJ, so it makes no difference if your property is near the Barclay Farm House or anywhere else in the vicinity. We’re here to protect your property from the elements. Give us a call.