The Most Precious Tips To Help You Get Better At Home Improvement Loans

Maddison Brown

3 years ago

“I just purchased our first home and would like to make some improvements to the property in the coming months, and although I have a little cash, I wanted to finance a loan to pay for the improvements. What should I do?”

The Most Precious Tips To Help You Get Better At Home Improvement Loans

Converting your house into your dream home is an exciting process. From selecting the best designs and color schemes, along with household appliances and flooring – you wish for everything to be perfect. And in this process, Home Improvement Loans with bad credit are there to help you through the finances. But how to use these loans effectively and efficiently is the question. Here is a guide to help you understand how to make the best out of your home improvement loans.

Having bad credit can often make you ineligible for home improvement loans but there are ways in which you can get home improvement loans for bad credit as well.

Home improvement loans or funds are borrowed to renovate or improve your house – it could be a small renovation such as repainting your room, or a big one such as transforming the entire look of your house.

I Recently Got a Home Improvement Loan. How can I Make The Best Use of My Funds?

Whether you already got a loan for a house renovation or are planning to get one, you must know how to use these funds effectively and efficiently. Your own Funding is here to help you with any financial difficulties you face while renovating or improving your house. We will connect you to lenders, who will provide you with funds to remodel and make improvements to your house.

Getting a Home Improvement Loan With Bad Credit – Things To Remember

While it might be difficult to get a home loan with bad credit, it is not impossible. Here are some options you can go for if you have a poor credit score.

Personal loan for home improvement

This unsecured home improvement loan is best suited for people with less home equity and a poor credit score. Here, you don’t have to keep your home as collateral, so these loans get approval faster. However, the payback period of home improvement personal loans is less flexible.

Credit Cards

One of the most hassle-free and easy modes of getting an unsecured loan for a home improvement. Here, you do not have to fill loan applications or even visit your bank multiple times to get your home improvement loan. Credit cards, however, have a higher rate of interest.

What Is The Eligibility Criteria For Getting a Home Improvement Loan?

Eligibility

The applicant must be aged 18 years or more
The applicant must be employed – salaried or self-employed
The applicant must have a residence – a permanent or a rental one (If rental, then they must have lived there for a minimum of 12 months)
A decent credit score (This varies from lender to lender, but it is usually 600 or above)

Documents required

Identity proof (Any One)

Valid Driver’s License
Voter ID card
PAN Card
Valid Passport

Proof of residence

Valid Passport
Electricity/Water/Telephone bill
Driver’s License
Voter ID card

Income Proof (Salaried applicants)

Salary certificate (of the last three months)
Income tax returns
Bank statement (of the past six months)

Income Proof (Self-employed applicants)

Balance Sheet and P/L account statements along with the annexure of the applicant (of the last three years, attested by a CA)
Bank account statements of the applicant and the business they own (of the past six months)

Home Improvement Documents

Original Title Deeds of the house
Proof of no encumbrances on the concerned property
Estimated amount required for the home improvement project given by a Civil engineer or Architect

Make An Efficient Use of Your House Loans

“ I recently got a loan for house renovation but was wondering if I could use these funds for anything else other than home renovation.”

Many people are not aware of the fact that Home Improvement loans can be used for different purposes and not just renovating your house. Here are some ways in which you can effectively use your house loans.

Renovating your house

A rather obvious one. You can use your house improvement loan to renovate your home – get new furniture, repaint the walls, transform your old dank basement into a studio, or even convert your house into a luxurious sanctuary.

Securing your assets

Not many know this, but you can use your home loan to secure your existing assets such as vehicles, property, etc. All you have to do is inform your lender about your car or any other property you own. This way, you can secure both your house and your assets.

Making big as well as small changes

Many times people tend to think that they can only get a home loan if they have a major renovation to make, but this is not true. Remember a home loan needn’t only be used for fully renovating your house and changing it. You can use this money for making small changes to your house – repaint it, get new household appliances, etc.

Before You Move Ahead

Getting your home renovated is an exciting process, be it a small or a big change. But make sure you don’t take hurried actions in this process. You need to consider a few things before you get home improvement loans.

The T&Cs

The terms and conditions for home improvement loans vary and you must read and understand these before opting for a loan. Have a look at your finances and only get a loan if you are sure you would be able to repay it.

Financial Stability

You should be financially stable enough to be able to repay the loans you are borrowing. Only take loans when you are sure you would be able to repay them in time.

Necessity

It is an important question you need to ask yourself before opting for a loan – Do I really need this? Apply for a home improvement loan if you feel it is necessary.

Proper Usage

Last but not the least, you should have a plan on how you are going to make use of the funds you borrow for house improvement. Are you only going to use it for renovating your house? Or are you also going to secure your assets? Remember this is not your money and make sure you don’t spend it on unnecessary things – This is the money you have taken on a loan, and you are required to pay it with interest. Spend your fundings wisely.

Home improvement loans are useful for when you need to renovate your home or even secure your assets. It is easy to get a loan for a house renovation. Anyone can easily get avail of it. You can use home improvement loan calculators to get an idea about how much funds you require, what is the maximum amount you can get, and how much interest you will be paying.