What is the difference between a home loan and a pool loan?  Weeks of time, loads of conversation, and paperwork!

We just bought a new primary and since we have so much equity, decided to put in a pool.  I called the pool loan guy at 4:00 on Thursday.  He told me he needed a copy of my mortgage note, my homeowners insurance policy, the HUD-1 from the purchase, a schedule of real estate owned regarding only the properties that show up on my credit report, and my name and social for the credit check.  By 1:00 the next day I had access to $40,000!

The pool loan is going to be a 3rd lien position note.  We’ll take out 4 draws over the course of the pool building process.  The pool is about $30k and the pool guy wrote us an addendum for $10k in “landscaping” so we’ll get $10k back at closing to use for landscape, blinds, whatever else we want to do with the $10k.  As soon as the pool is done we’ll re-fi all three loans (1st, 2nd, 3rd) into new financing.  Interesting how little info they need to loan out this money.  Nothing regarding income or assets.