Home Improvement Loan-What you Need to Know
Today many people are considering a home improvement loan as a way to expand their existing home or upgrade features within their homes. Whether you’re thinking of selling your home at some point the future or simply want to make some much needed changes a home improvement loan can make your dream a reality. Before you begin drawing those floor plans; however, take some time to consider all the aspects of a home improvement loan.
First, it’s important to always ensure you know exactly how much you need to spend before you apply for a home improvement loan. In reality, you need to obtain at least three estimates and then add an additional 10% to 20% onto the top of the highest estimate. Many people often believe they can get by on far less than it really costs for a home improvement project. By including some extra wiggle room you can be sure you’ll be able to breathe easy even if you do run into some unforeseen costs.
Know your Credit Score
Take the time to understand your credit score before you apply for a home improvement loan. There is no quicker way to have your hopes dashed than to apply for the loan and then find out there is something on your credit report that will prevent you from being approved. It may surprise you to learn there could actually be errors on your report you can correct. When you check your report and clear up any problems ahead of time you are able to increase your chances of being approved for a home improvement loan.
Interview and Get Estimates
Never go with the first product, contractor or loan you run across. Exercise your right to choose and do some shopping around to be sure you’re getting the best deal. MortgageLenders.org can help you with this by assisting you in locating a variety of different lenders. Ideally, try to obtain at least three contractor estimates and do the same for products and materials as well as loan offers. This will give you an idea as to what the average price for each.
Read the Fine Print
Finally, make sure you have everything covered by finding out exactly what types of home improvements can be included under the terms of your home improvement loan. Most loans are fairly broad but some can be quite specific. Examples of restrictions on home improvement loans may include:
- Certified contractors required to do the work
- No changes in plans after loan closes
- Builders must be prior approved
- Cannot be used for non-permanent structures
If after reading what you need to know about home improvement loans, you feel this type of loan may suit your needs, let MortgageLenders.org connect you with a wide network of lenders providing numerous home improvement loan products.