You need a new roof. Or perhaps you just need major repair. Either way, it’s time to make sure that your home is safe for the next storm, rain, or snow. Unfortunately, that realization comes with an almost immediate concern: how will you pay for that new roof?
It’s a complex question. Many homeowners don’t know how to answer it. They live paycheck to paycheck, and simply don’t have the money to spring for a new roof in cash or existing savings. In that case, financing becomes the only option.
Roof financing, of course, is not as simple as going to your bank or getting a loan. The countless options available today require at least some research and expertise to know exactly how you will make the right choice for your bank account and your family.
So you start looking for the best roof financing in Ann Arbor, MI. What you find is countless lenders looking to work with you, because they want your interest. Instead of going for the first option, hold on for the best. That, in turn, requires some understanding of what you’re actually looking for.
HomeAdvisor estimates that on average, homeowners in the United States pay between $5,000 and $10,000 to replace their roof. Meanwhile, major repairs can range up to $4,500. That’s a major cost, but one that you have to keep in mind and clarify before you even begin to look at financing options.
When you perceive an issue with the roof, get a trusted contractor out to take a look. Here, it’s crucial to go local; an Ann Arbor roofing contractor will not just be able to be there more quickly, but also knows the nuances of the area to understand just what might ail your home.
Most contractors will be able to give you an accurate quote on roofing repair or replacement once they’ve been able to take a thorough look. If you think it’s high, talk to a couple of other professionals to get a second opinion. You should need no more than three contractors and quotes to get a reasonable idea of your total roofing costs.
Now, start looking into what that cost means for your finances. A minor, $500 repair may be payable after the next paycheck. A major replacement at $10,000 or above probably won’t be. Estimate exactly what you can pay, and where you need finances. Only then should you look into the actual financing options available to you.
Let’s get the obvious out of the way: if you can pay for your roofing repair or replacement in cash, go for it. Not having to incur debt for improvements to your house is a great thing. Unfortunately, it’s also something that most Ann Arbor residents are unable to do. Still, cash can play a role in your financing.
First, you might be able to do a down payment for any loan. Many lenders, in fact, require that down payment for personal and home improvement loans. More on direct lender financing below. You do always have the option to pay part in cash, and part in a smaller loan with lower payments and/or a shorter payoff duration.
However, whether you’re looking to pay in all cash or partially with a loan, you have to make sure you can actually afford the direct payment. Simply having it in your checking account at a given time is not enough; you might need it for bills that are about to come due. That’s why, in many cases, going with financing instead is a smart and financially sound move.
Don’t lose faith if your checking or savings account balance is not enough to pay for a new or improved roof. Your safety, and your home’s integrity, is more important. Instead, look for smart financing options that help you get the necessary repairs or replacement without putting you and your family into financial turmoil.
When you’re looking for financing, your first instinct might be going directly to your bank. After all, they already handle your finances, so it should be easy to take out a new loan, right?
Not necessarily. Direct lender financing can be difficult. Often, it comes with restrictions on personal loans, which might not cover the cost of the entire roof. Loans that do tend to take home equity as collateral; if you’ve not paid enough on your mortgage yet, you’re often out of luck.
The complications don’t end there. When you take out a bank loan, you get it all in a lump sum. That makes it immensely tempting to spend the money on something other than the roof, simply because you need it too. By the time your roofing contractor needs paid, you might not actually have the full amount ready – and need yet another money source.
There are other drawbacks to direct lender financing, as well. For example, it means that you have to take care of any insurance reimbursement, if it applies to your roof, yourself. You might miss out on crucial money needed to rebuild your roof after a storm simply because you didn’t know what paperwork to fill out.
Finally, you have few ways of knowing which is actually the best loan for you. Unless you inform yourself and apply for every available loan in your area, you might end up with one that has a higher interest rate or higher monthly payments than you actually need to pay.
The unlikeliness of cash payments and the drawbacks of direct lender financing lead to so-called ‘company financing’ as your best option. This is when a roofing contractor helps you get the financing you need, as part of their service in replacing or repairing your roof. It’s worth looking into, considering the many benefits that come with it.
First, this type of financing is more borrower and project-oriented. It’s based on your specific project, which a bank simply cannot do. That means you don’t borrow more, or less, than you actually need to. Instead, you get a loan for the exact amount you need to make sure you can pay for your new or repaired roof.
Another benefit is that roofing companies typically work with multiple lenders. That, in turn, means they have a number of options for your financing needs. From low interest rates to no down payment, these options lead to a loan that’s much more likely to fit your financial situation as you figure out how your new roof gets paid for.
It doesn’t end there. The right roofing contractor in Ann Arbor, Michigan is able to work with your insurance on your behalf, getting your paperwork processed to make sure you get any necessary reimbursement checks. If your insurance allows for advance payments, you might even lower the amount of financing you have to deal with to begin with.
The most obvious option is not always the best. You might not even know that your roofing contractor offers not just one, but multiple financing options. If that contractor is trustworthy and credible, reducing the amount of work you have to do on financing the work can only benefit you as you deal with the other stress factors of having your roof repaired or replaced.
Pay special attention to that last paragraph. Company or contractor-based financing can only make sense if that contractor is actually credible. Naturally, working with the best roofing contractors in Ann Arbor helps. Only the right partner can make sure that your financing is reliable, affordable, and can help you meet your needs as you get your new roof.
In fact, A2 Roofing offers a number of financing options for our Michigan roofing customers. Unlike our competition, many of our loans have low monthly payments and start with 0% down. Furthermore, we help directly in working with your insurance to make sure you only have to pay the items that are not already covered. In other words, we maximize your opportunities by minimizing your stress factors.
We stand by our work, as well as our financing options. Compare us to any other roofer near you, and you’ll be satisfied. In fact, learn more about your financing options through A2 Roofing today to understand whether this is the right fit for you. It’s the best way to make sure that if your roof needs repair or replacement, you can afford it – and you trust the people that help you afford it.
Ready to learn more? You might already know that you’re ready for a full replacement, or are still gauging your options because something is wrong with your roof. Either way, finances have probably entered your mind. We want to help you minimize that stress through financing options designed for homeowners like you. Contact us today to learn more, and get started on your roofing project without a headache on how you’ll afford it.