Sometimes heating and cooling systems break down at inconvenient times, and many homeowners haven’t been able to set aside enough money for such an expense. When you finance your heating and cooling system, you can get what you need right away, while being able to make comfortable payments toward your investment.
How Financing Your Heating and Cooling System Can Help You
Financing generally goes through a lending agency that works with the HVAC company. The lending agency handles the financial side of the transaction, while the HVAC company provides the service.
Ease of Mind
Financing can help individuals and families get needed repairs and replacements without having to worry about paying the entire amount up front. Having to make a large purchase can be traumatic and nerve-wracking, especially if the investment means that you’ll fall behind in other important areas. By financing your HVAC needs, you can continue to enjoy livable temperatures without having to break the bank.
If you buy an energy efficient system, you’ll be saving yourself money each month in utility costs. For instance, replacing an air conditioning unit with a 10 SEER (seasonal energy efficiency ratio) with one with an 18 SEER can save you up to 48 percent in your annual cooling utility costs.
How to Obtain Financing
You don’t need to have perfect credit to qualify for HVAC financing. Gather the following documents so the lending institution can make a fully informed decision:
- Credit report—A good credit score is an important factor in obtaining quality financing. The amount you’ll receive and the interest rate on the loan will be tied to your credit score.
- Pay stubs—Gather the last three months’ worth of pay stubs for income verification. If you’re self-employed, bring proof of income through either deposit receipts or your last tax return. If you have others listed on the loan application as well, they will also need to provide proof of income.
- Letters of reference—Some companies allow letters of reference, which helps them determine the outcome of the loan application. This is especially important if you have poor or minimal credit, as the letters can help show your reliability. If you’re able to provide reference letters from employers or utility companies, you can show that you’re consistent and financially responsible.
If you need to replace or repair your HVAC system and don’t have the funds to hire a contractor on your own, consider speaking with your HVAC company about financing options. Most companies understand their customers’ situations and offer finance applications as part of their regular service.
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