A consequence of the struggling economy is that homeowners are deciding to renovate, rather than upgrade to a new home. So, home equity loan companies and calculators from Miami to California and the UK are putting in some serious overtime! Home equity loan facilitators are rubbing their hands gleefully as clients queue around the block, eager to apply for the money that will turn their dream kitchen or bathroom into a reality. What does it mean to get such a home improvement loan and what should you be on the lookout for before and after getting your quote?
If you are considering an Extreme Home Makeover of your own, a quote from the right home equity loan company may help to open the door to the home of your dreams. However, this may turn out to be a very expensive proposition if you are not careful. Make sure that you have a sensible plan in place before you get your funds. Tap into the knowledge of professionals in order to make sure that you invest the money in areas that will really add value to your home.
Never use the funds for a frivolous item such as a holiday. Opt for home remodeling projects with long-term benefits, such as window awnings, a bathroom or kitchen remodeling project, or a laminate flooring installation.
Remember, you will be borrowing against the value of your home. A home equity loan company subtracts what you owe on the mortgage from what your property's value is in the market. For example, if your home can be sold for $220 000 and your mortgage value is $170 000, the loan calculator may approve you for a loan of $50 000. Such a mortgage is seen as an investment that should add further value to your property if used wisely. By applying, you may risk losing your home if you can't repay the loan. Make sure that your finances allow you to handle all payments on time, before heading for your nearest Lowes Home Improvement Store.
There are many pitfalls in this market and you have to do your homework in order to get a secure and safe deal. Get reliable advice and as many home equity loan quotes as possible before you make a decision. Approach reputable companies with rock-solid histories. If your credit score is what it should be, you can be sure that you have valuable negotiating power. Use this. Don't just accept the first offer at face value.
If you are a do it yourself enthusiast with some experience, you may decide to tackle the project you are planning yourself. If, on the other hand, you are all thumbs, rather pay a bit more and get a professional to do the job. If you finance a home improvement loan, a reliable contractor may give you better value than a DIY effort. Get a recommendation from a reliable source to ensure satisfaction and a quality job.
The home equity loan company can usually structure the deal in a number of ways. Shop around for the option most suited to your financial circumstances. Your options may include variable interest rates, fixed rates, a substantial up front fee, closing costs or a balloon payment at the end of the term. You may choose a secured option. Read your contract carefully and if you are unsure about any of the details, contact your lawyer.
Check and double check all conditions and extra costs. These can get you in trouble over time if you are not careful. Never sign a contract without reading all the fine print. Ask for an explanation if you don't understand something. Some home equity loan companies such as 1Stop Finance Shop, NetLoans, Home Improvement Loan, Norton Finance and Zengo Finance seem to get good reviews from customers over time.
Online quotes are gaining in popularity due to the speed with which loans are approved and the convenience of the process. Online home equity loan secured applications are also in demand. Customer care is usually excellent if you approach a well-known lender. The applications are usually processed quickly.
Beware of a really cheap offer from a home equity loan company. If the deal sounds too good to be true, it usually is!