Key Factors of Home Improvement Financing
Overview of Loans for Home Improvement
A home improvement loan is a special type of loan a lender provides to home owners that allows them to make home repairs, updates or remodeling. While home improvement loans may be secured by the property, this is not always the case. Even without the security of the property, the lender may still consider the loan a home improvement loan.
Loans for home improvement have the sole purpose of increasing the value of the home, so you want to seriously consider the best home improvement ideas for your money. It’s important to keep in mind that whatever you spend on home improvements will increase the overall cost of your home, and you want to be able to recoup these costs in the event you decide to sell your home.
Features and Benefits of Home Improvement Loans
Since home improvement loans are intended for the sole purpose of performing or contracting tasks that will improve the value of your home, they also include benefits and features that are rather unique in nature.
- May be secured or unsecured
- Usually includes a minimum loan amount of about $5,000
- Usually short term loans
- Many lenders offer borrowers the opportunity make payments and access their accounts online
- No collateral necessary in many cases
- Lower interest rate that most credit cards with lenders often providing same day approval
Those who are looking for home improvement loans with bad credit, you may want to understand the importance of having good credit. Before you look into how to get a home improvement loan, you may wish to think about getting your credit on the right track by talking with a debt counselor in your local area. Your credit history will have a definite effect on home improvement loan rates and may even prevent you from obtaining an unsecured loan.
Things to Consider for Home Improvement Projects
Before you seek home improvement financing you may want to give some careful consideration to the following:
- Is the project you are contemplating appropriate for the neighborhood? While a large addition can certainly make your home the nicest one on the block, it could also make it the most expensive. This could be a draw back in the event you decide you would like to sell the house at a later date.
- How much equity do you have available for the projects you are considering and what is your maximum budget? If you have had your home for many years you will probably not have any trouble in this area.
- Are the projects you are considering providing the most for your money? According to research the improvements that offer the best return on your investment includes upgrades to kitchens, baths and curb appeals. You want to make sure you spend the money where it will be the most beneficial.
Here’s How Real-Estate-Yogi.com Can Help You
When you seek home improvement help from one of our specialists, here is what you can expect to receive:
- Help choosing the right home improvement projects based on your budget and current home value
- Access to a home improvement loan calculator
- Help finding the right lender based on your ideas, credit history and budget
- Specialists who will work with you and guide you through the entire process from application to distribution of loan proceeds
Ideas for Home Improvement Loan Projects
There are many different possibilities for home improvement loans. While these involve many different areas of decorating and design read more for financing your home improvement project. The following ideas may help you gain some insight into what you may want to do.
- Add-ons - This is an area rather open for new ideas. You may want to add a third bedroom to a two bedroom house or a second bathroom to a three bedroom house that only has one bathroom. Another idea for a two bedroom house is the addition of a master suite with a full bathroom and his and hers closets. The possibilities are endless!
- Amendment - In this area you should concentrate on bathrooms and kitchens because this is where you will get the most return on your money. These two rooms seems to become outdated so quickly, so you want to make sure you use classic design concepts and avoid flashy colors that tend to go out of style quickly.
- Curb request - Simple things such as improving on landscaping or painting the outside of your house can make a huge difference in the way others perceive your home and how it affects the value.