How to Get a Home Improvement Loan
Getting a home improvement loan can help boost the value of your home. The money can be used for anything from a new roof to a septic system. The best way to get a home improvement loan is to get one from your bank. Banks are more likely to approve loans for home improvements because they are invested in the growth of your home’s value. They are also more likely to offer you a home improvement loan if you already own your home.
If you want to get a home improvement loan, you’ll want to make sure you have a solid estimate of the amount you’ll need. This may mean requesting less money than you really need, but if you can afford the difference, you’ll be rewarded. Also, make sure to get a loan from a reputable lender. It’s a lot easier to secure a home improvement loan from your bank if you have excellent credit, so it’s a good idea to make sure you have a good score before you apply.
Another way to get a home improvement loan is through an online lender. Some lenders offer a home equity loan, which is essentially a second mortgage. This Home Improvement Blog type of loan lets you borrow against your home’s equity and repay the money over a period of five to 30 years. Home equity loans come with some fees, but they are a good way to get cash for home improvements. Depending on your credit score, you may be able to get a home equity loan as long as you have a good down payment.
Another way to get a home equity loan is by refinancing your mortgage. A refinancing loan can give you extra cash to spend on home improvements, and may even cover some of the origination fees. However, if you plan on using the money for a long-term project, consider other options.
It’s no secret that home improvement projects can be expensive. It’s also no secret that some home improvement projects aren’t tax deductible. If you plan on using the money you borrow to fund a major project, be sure to consult with a CPA first. You might find that you have to pay sales tax on your materials, which could eat up your savings. You also may have to pay up-to-date property taxes. This can quickly snowball into a five-figure bill.
The best way to find out the home improvement lingo is to go online and do some research. Most states require that you submit a document to the Department of Taxation and Finance demonstrating that you made a home improvement. You can find examples of the home improvement lingo in TaxSlayer’s home improvement page.
The home improvement industry is booming. Homeowners spent approximately $30 billion on home improvements in 2010, a growth of nearly five percent. This figure is expected to grow in future years. Whether it’s remodeling your bathroom or adding an at-home entertainment system, a home improvement project can be a great investment that’s sure to pay off in the long run.