Finding the Best Home Improvement Loans
Written by: John Mussi
When the time comes to do work around the house, finding good deals on home improvement loans can be vitally important.
Home improvement loans can be used to help you improve any part of your house or other real estate, providing you with the money to get the materials that you need and to hire the professionals that can get the job done.
Interest rates tend to be lower, since the improvements can actually raise the value of the real estate, and home improvement loans can even include some of the external costs associated with building (such as building permits and property taxes.) Best of all, you don't need to supply any additional collateral. the improvements and the real estate serve as their own guarantee.
Equity is a key factor
When applying for home improvement loans, the equity of your house or real estate comes into play in a major way. Equity, if you aren't sure, is the amount of money that you have invested in the home or property. in other words, it's the portion of the house that you actually "own", and that isn't tied up in a mortgage or other loan.
If you have a mortgage for £100,000 on a home and have already paid £50,000 of it, then you have 50% equity in that home. or £50,000. This means that if you apply for home improvement loans on that house, the equity that you have will be a major factor in determining how much you can borrow.
The equity in the house serves as the collateral for the loan, and allows you to get home improvement loans that you otherwise might not be eligible for.
Researching the project
Before applying for home improvement loans, you need to gather some information. You're going to need to get the cost of supplies from at least 2 or 3 different outlets (such as building supply stores), as well as estimates from 2 or 3 contractors on how much the entire job will cost.
From there you need to start getting quotes from banks or finance companies, showing them the work that you plan on doing as well as the estimates for materials and labor.
After receiving several loan quotes, look them over and see which one has the lowest interest rate with the best terms. this is the place you want to get your home improvement loans from.
Once you've obtained your loan and started on your improvements, you need to start working on repaying what you've borrowed.
Not only does fast repayment prevent damage to your credit report, but it can also help to establish a good working relationship with a lender which can lead to lower rates and better terms down the road.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
New Home Construction Loans 101
When you are ready to build your first home or that dream home
that you have been wanting for so long you will probably wind up
needing help with the financial part of the building process.
The funding for your new home is available through new...read more
Home Equity Loan Refinance - Important Facts
Refinance refers to applying for a secured loan intended to
replace an existing loan secured by the same assets.You must
speak with a finacial advisor before you decide to refinance.
Refinancing the loan you had taken at higher rates is a...read more
How to Qualify for a Home Mortgage Loan
Are you considering applying for a mortgage loan to purchase
your first home? If so, you should read the following tips below
that will make the process easier!
If You Have a Good Credit History It Is Easier To Qualify For
Return to Home