Home Project Financing: Questions to Ask Before You Sign
A neutral homeowner checklist for evaluating financing offered alongside a home repair or improvement project.
Separate project price from financing
First understand the cash price and exact project scope. Then evaluate financing terms separately so the cost of the work and cost of credit are not blurred together.
Ask for the complete terms
Review interest rate or other finance charges, term, payment schedule, fees, promotional periods, conditions, prepayment terms and what happens when a promotion ends.
Understand who provides the financing
The contractor and lender may be different companies. Know who you are borrowing from, who services the account and where questions or disputes are directed.
Do not let financing replace project diligence
A convenient monthly payment does not make a project scope appropriate. Compare the contractor, work, warranty and total project value independently from the financing offer.
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