There are thousands of
products available for home improvements. Home improvements can include
anything from upgrades like replacing carpet to major renovations like
adding a room or garage to your home. All home improvements have one
thing in common - you will be borrowing money to improve the quality and
appeal of your home. In almost all cases this means you will also be
increasing the home's value.
Products available for home improvement vary widely. You may do an
equity line of credit, a closed-end 2nd mortgage, an after-value loan, a
first mortgage, or a host of other equity products. What you want to
accomplish, how long it will take, how much equity you currently have
available and how much you can afford are among the most important
considerations when choosing a loan product.
While trying to
accommodate what you want to do, you must also be aware of what you
qualify to do. The guidelines for these products are "lender
specific." This means that there are literally thousands of lenders to
help you with your project, but each will have their own list of
qualifications. All lenders will be looking at your credit, income,
property, assets and the improvements you plan to make.
It is absolutely critical that you not
begin your project before you obtain financing. It is nearly
impossible to find financing once you've torn down walls, stripped
floors or dug holes (just to name a few starting points). Explore
several different lending solutions and make sure you have a long term
plan for when your project is complete.
