Owning a house is a great achievement. Making improvements on that house is a much better decision that will give it the necessary facelift and improve it’s value in the market – just in case you plan on selling. Even so, the improvements will only have a positive effect if you can raise the funds for such a task. If you have not saved enough money for the improvements, the best option would be to get secured home improvement loan. What do you need to get the loan?
First, the fact that the loan is secured means that the lending institutions will not find you a huge risk. By applying for such a loan, you will get the entire amount that you need for the home improvement. The money that you raise through the home improvement loan will be adequate for all the work that you want to do on the property. You have the freedom of choosing a fixed interest rate for the entirety of the loan repayment period.
Most importantly, you only qualify for the secured home improvement loan if you have collateral. On the other hand, you need to guarantee the following prior to the lending institution considering you qualified for the loan:
- the collateral must have an excellent market value
- the borrower needs to show proof that he is of statutory age
- the borrower must show proof of income to guarantee that he is capable of repaying the entire loan without defaulting
Although credit history is a factor that the lending institution has to consider, there is no cause for alarm. This is because more lending options do not deny you the secured home improvement loan because of a poor credit history. What the lending institutions need is proof of income, document showing that you are of the statutory age, and the appropriate collateral. It is worth mentioning that some lending institutions do not ask for collateral.
The next thing that you need to do is to get all the appropriate documentation in order prior to applying for the loan. You will have to exercise some degree of patience, as some of these documents take long to obtain. For that reason, remove pressure from your shoulders by giving yourself ample time to acquire the proper documentation. A lending institution will for the most part ask for the following documentations:
- property estimation fee
- home improvement plans
- proof of tax compliance
- contractor information sheet
- borrower application form
- letter signed by the lender and borrower
The benefits you get from the secured home improvement loan include flexibility regarding the amount to apply for, interest rates and the length of the repayment period, which depend on your prevailing financial situation as well as personal needs. Applying for a joint loan is an option worth considering as well. Some lending institutions will approve your request for the loan in only a day, thus enabling you to embark on the improvements immediately.