Get quotations for the supply and installation of the furnace you want. Compare the cost of operating the different types of furnaces to determine which one will be best for your budget and lifestyle.
Investigate the in-house financing options offered by furnace installation companies. Most companies offer several finance programs, such as the "same as cash" no-interest payment plan over nine months offered by one installer in Kentucky.
Check your credit score. You will need to know whether your credit record is good enough to apply for traditional financing, because a furnace is usually unsecured financing. The three consumer reporting companies in the U.S. all offer a free credit report online or by mail.
Contact your mortgage company to find out if you are eligible for a home equity loan for the purpose of installing a furnace. This type of loan will be based on the difference between the market value of your home and the amount you currently owe on it, and the property will be used as collateral to secure the loan.
Approach lending institutions that offer loans for home improvements, particularly energy-efficient renovations. One institution that provides this service is the Umpqua Bank in Oregon, whose Green Street Lending product is designed specifically for this purpose.
Apply for the finance option you select. Read the draft contract carefully before signing for whatever financing option you select. Each type of finance attracts a different level of interest, and you should ensure that the rate remains static for the duration of the agreement. If you opt to go with the furnace installer's home finance, do research to ensure you are dealing with a reputable company.
Check the terms and conditions for contract penalties. You may want to pay it off faster to reduce the interest, but this could incur a penalty payment that matches the interest the lender loses. In this case early settlement would not benefit you.
Have your furnace installed and start reaping the rewards of lower energy bills and savings on repairs.