Planning the Construction of a Pool House

Home Improvement

Consumers who are already homeowners but want to construct new spaces on their property need viable financing for their projects. A pool house is a great addition to a property with a pool. The larger estate offers a new living space for friends or family members visiting the property owner. Planning the construction of the pool house helps the property owner access their options more fully.

Getting Estimates for the New Construction

Getting estimates for the new construction shows the buyer how much they need to construct the pool house on their property. Contractors can review the plans with the buyer and determine how much the project will cost. Getting more than one estimate gives the consumer a median cost for the project and a chance to evaluate the contractors more fully before making a final decision.

Obtaining a Second Mortgage or Using Equity

When financing the project, the property owner has one of two primary options for getting the funds. They can either borrow from the equity in their home or take out a second mortgage. The total cost of the project and how much equity the homeowner has accumulated defines what option is better for them. If they don’t have enough equity to pay for the cost of building the pool house, the second mortgage is a better choice. Reviewing how the project affects the buyer economically defines whether or not it is time to start the project. Lenders will extend a loan or line of credit based on the buyer’s ability to afford the new monthly payments. Reviewing these options with a lender helps the homeowner define what they can or cannot afford.

Reviewing the Down Payment Requirements

Reviewing the down payment requirements helps the homeowner define how much they need to secure a new mortgage. If they must take out a second mortgage to pay for the pool house construction, the property owner will be required to pay at least 20% down for the new mortgage. If the borrower has funds in savings to cover these costs, it is easier to manage. However, some homeowners will need to put off the project until they have the required down payment. Reviewing their options shows the homeowner when to start additions on their property. Consumers who want to assess these options find more information at NRIA now.

Updating the Insurance Policy

Updating the insurance policy to include the new pool house helps the property owner protect their investments more fully. It is possible to add the pool house under an umbrella policy that covers the primary home and the on-site addition. When closing a second mortgage, the buyer must have the pool house covered by the proper insurance policy or policies as defined in the mortgage contract.

Consumers who want to build a pool house on their property review their financing options after obtaining an estimate for the project. New construction projects improve the value of the property and give it vital upgrades. Consumers who want to secure financing for building a pool house contact their preferred lender now.

Louis Jones

Greg Jones: Greg's blog posts are known for their clear and concise coverage of economic and financial news. With a background as a financial journalist, he offers readers valuable insights into the complexities of the global economy.