How to Seal the Deal on a Home Improvement Loan

Jan 22 • Finance • 2773 Views • Comments Off on How to Seal the Deal on a Home Improvement Loan

Taking out a home improvement loan is like borrowing money to give you double the cash—in essence, you are borrowing money to add to your home’s value. Whether you are doing so to get it ready for resale, or to simply renovate the home to make it more functional for your needs, this is a solid way to make an investment within your own pocketbook. Home improvement loans are a good way to pay for small, simple jobs such as re-tiling a backsplash or changing your home’s fixtures, or more complicated remodeling projects like turning your attic into a bedroom or finishing off the basement. There are a number of ways to qualify for home improvement loans, and doing so in Naples by Foundation Mortgage is simple—as you will be working with veteran experts who have years of experience.

Types of loans

There are a few ways to get your home improvement loan. The first is known as a HUD Title I. The Housing and Urban Development Department is a portion of the Federal Government and Title I loans are used specifically for home improvements to a property. These loans can also be used for landscaping or to do external home repairs, such as re-surfacing the roof. These loans are insured by the Federal Housing Administration, and financed by private lenders. Furthermore, they are beneficial in that they are easily acquired and take very little work to get the financed.

HELOC (Home Equity Lines of Credit) offers available equity in the home to secure a second mortgage. These loans take the remaining equity in your home without altering the first mortgage and are used to make home improvements. Clients can borrow and repay the loan, as well as re-access the credit line.

Where to put your money

When engaging in a home improvement project with the funds awarded by your lender, make sure you renovate wisely, or you could get zero to little return on your home’s value. Avoid making changes to suit your personal taste, like building a custom wall to accommodate a huge fish tank. You will want to stay in tune to what is popular, neutral, and upgrade to meet the hot trends that buyers look for in homes.

If every room in your home was outdated, ask any realtor in any city and he/she will tell you to do the kitchen above anything else. A kitchen upgrade offers the biggest return on your investment. Having popular granite countertops, a contemporary/modern tiled backsplash, hardware, and nice flooring will add value to your home like nothing else. If you have the room, add an island. Buyers love them. If your cupboards are in good shape, but ugly as sin, there is no need to replace them; simply have them resurfaced and add new hardware. This can be accomplished at a fraction of the cost versus getting brand new ones. The second room that adds more value to the house is the bathroom. Decor Planet Bathroom Vanities will definitely make the house more attractive to the buyers and it will raise the value. Change the paint on the walls and freshen up the space with a neutral color. Also, create more storage in the home. In an article published by Better Homes and Gardens, the author tells readers to transform a plain wall into storage and display showcase by adding stacks of open shelves or cutting out the drywall to create a recessed niche. This will help sell your home because buyers will imagine their own possessions displayed on the shelves and, therefore, they will be making an emotional connection to the home.

Remember, the loan you take out is meant to help you add value to your home. Don’t make careless purchases like new furniture. The point is to upgrade the home and the way it functions. This will increase its value, and give you a nice return if it is done correctly.

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