The Ultimate Beginner Guide To Home Improvement Loans

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Sick of coming home to a dull living room? Or are you tired of staring at your outdated bedroom ceiling every day while going to sleep? If yes, then why not consider a home improvement project. Such a project not only gives a lift to your home but also increases its market value. However, while it is beneficial, any improvement project regardless of how major or minor it is, can be quite costly, and maybe your savings aren’t enough to cover it all. If you are stuck in such a situation, then you should consider getting a home improvement loan. Check out all you need to know about these loans before you take one.

What Is A Home Improvement Loan?

Just as the name implies, this is a type of loan tailored for homeowners who borrow with the intent of upgrading their homes. You can take out such a loan for various home projects from remodeling, repairs or home upgrades. Based on your credit, these loans range from as low as $5000 to as high as $100,000 while the rates might be as little as 3% to as high as 18% for borrowers with proper credit. Also depending on your credit, the loan amount you are borrowing and the terms of the contract, the loan repayment period may vary between one and seven years.

Where Can You Get It?

There are many sources of home improvement loans especially in 2019. Here are some top sources 

Traditional banks are the number one sources of most home improvement loans. If you have a mortgage from your bank, you stand a higher chance of getting your loan approved as the facility also wants to see your home grow in value. If you are a member of a credit union, you should also give a thought to taking out a home improvement loan from it. In a bid to keep up with the competition, such unions often offer favorable rates.

Online lenders are the newest craze in town when it comes to these types of loans. This is because most loans borrowed online are often quickly processed hence are more convenient. All the above types of lenders have their pros and cons. Therefore, ensure you analyze the perks and disadvantages that each lender brings to the table.

How To Get The Best Home Improvement Loan 

Now that you know where you can get one from, here are a few tips to keep in mind if you are to access any best home improvement loans 2019. Figure out the exact reason why you need it. As noted earlier, a home improvement loan is only given out to homeowners who intend to upgrade their home. This means your chances of getting approved for one are higher if you specify the exact reason why you need it. If you want to update your bathroom, add new furniture or remodel your basement, ensure you specify the reason in your application.

Once you know why you want that loan so bad, the next step to getting only the best is doing the math and knowing the exact amount of money you need. Resist the urge to apply for an amount higher than what you need as this will not only put you in more debt but will also lower the chances of getting approved, especially if you are borrowing from a bank. So do the math, figure out the exact amount you need and include the estimate in your application.

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