Structures made of concrete or wood are now considered behind the times. Because of technology, metal buildings became the leading option for commercial, industrial, and residential applications. They are more reliable and durable, which makes them a valuable investment.
However, steel buildings can be more costly than others. This is why many people turn to financing to cover costs. In this blog, you’ll find a brief guide on how you can finance your steel structure installation. We will discuss the loan options, application process, and other aspects of metal building financing.
Can You Finance Steel Buildings?
The answer is yes! You can choose financing to kick off your building project sooner. This means there’s no need to pay the lump sum on the spot. You will be billed each month or quarter for the cost of installation plus interest charges. Basically, metal building financing means you’re buying the unit on credit.
Financing Option Available
Whether you are purchasing a metal carport or barndominium, prefab steel buildings may be a huge expenditure. Fortunately, there are multiple ways you can finance your metal structure:
- Personal Funds
- Commercial Banks
- Credit Unions
- Loan Associations
- Mortgage Banks
- Brokers and Lenders
- Investment Trusts
- Independent Financiers
- Government Agencies
Metal Building Financing Process
Get Pre-Approved
The pre-approval process will get the ball rolling. In any kind of financing, getting preapproved is important. This step will help you identify how much you can afford for a metal building. Without a pre-approval, you might waste time and money on blueprints for a structure that you will not be able to afford.
Find a Reliable Contractor
A metal building contractor will design and erect your prefab unit. Most lenders review the builder in charge of the project. Look around and ask for recommendations. The licensed metal building contractor is critical in ensuring your project’s success. It’s best to compare different builders in terms of cost and expertise.
Prepare Loan Requirements
Your lender will likely ask you to get important documents together: blueprints and floorplans, financial information, and detailed pricing of the prefab unit. Gather all the necessary documents for hassle-free financing.
Proceed With Contract Agreement
The next step is to enter a contractual agreement between you and the lender. Having an excellent credit score will make the transaction easier. You should have a low debt-to-income ratio and sufficient income to secure the loan.
During the contract negotiation, you will discuss the amount to pay over time. This includes the principal amount plus interest or finance charges. You and the lender should both agree on the final purchase price.
For rent-to-own metal buildings, you’ll decide which party is responsible for maintenance. For example, you (the buyer) will pay for small maintenance jobs while the seller will handle larger upkeep and repairs. To avoid financing scams, you may consult a lawyer who can look over your contract before you close the deal.
Make the Down Payment
As a buyer, you should make a down payment on your prefab steel structure. Depending on the contract, you’ll only pay a percentage of the lump sum at the time of purchase. Typically, the down payment is about 0% – 5% of the final purchase price of the building. After this step, the buyer will repay the balance every month or quarter. The faster you can pay off the remaining installments, the more money you can save.
What Is Rent-to-Own Metal Building?
Many metal building manufacturers offer rent-to-own programs. You can own your steel structure through flexible payment options. When you apply for a rent-to-own program, you can gain ownership of that building after three to five years.
Rent-to-own provides you with more freedom than traditional renting. With this financing option, you can expect a small up-front payment, no credit check, affordable monthly payments, and a hassle-free approval process. Every payment you make on your metal building is a step closer to full ownership.
Let’s Start Your Steel Building Project!
No matter what structure you want, metal building financing is a complex topic. Texas Custom Metal Buildings of Midland is here to guide you! We will help you understand the best financing option for you.
Tell us about your building needs, and we’ll provide you with the best deals. Do not hesitate to contact us about financing or customizations. Let us help you get the metal building of your dreams!