6 Steps To Getting The Right Home Improvemet Loan

Steps to Getting the Right Home Improvement Loan

Deciding to improve your home can not only be a challenging decision but an expensive one as well. Unfortunately, improvements are necessary if you want to increase the value of your house. For some projects, there is no time to save cash up in advance like mould remediation or structural repairs. These problems often come pop up unexpectedly.  A common way to get the needed funds for immediate home improvements or projects that take too long to save for is by taking out a home improvement loan. If you plan on doing this, follow the below easy steps for convenience!

1, Home Equity Loan vs. a Home Equity Line of Credit

As you might know with a home equity loan, you are giving the loan money at one time as a traditional loan.  With a home equity line of credit, you only draw on the money when you need it.  One significant difference between a home equity line and a line of credit is often a load is a fixed interest rate while a home equity line of credit is an adjustable rate product.

2, Estimate the Total Cost of your Projects

Knowing what your home improvement project will cost is very important in determining the size of the loan that needs be taken out. Be sure to make and allowance of about 10 percent in determining the ideal loan amount since there may be unexpected costs arising during the renovation process. You also need to decide how much cash you have available to pay upfront as this will result in a decrease in your loan amount.

3, Shop Around

Shopping around for the best loan to suit your budget and need is critical. Comparison sites may be your best bet to see all of your financing options. These will compare home improvement loans from different providers at once and allow you to see the pros and cons of each in one place. Look for an investment that provides the lowest interest rates and the annual percentage rate. Take the length of the loan into consideration. Longer loans will be easier to pay off since the monthly payments will be less, but it will take longer to do. Be sure to take all factors into consideration when choosing the right loan for you.

4, Pre- Qualify

Consider getting pre-qualified for your loan. This will enable you to find out what the maximum amount is that you can borrow. You will then be able to determine if you need to save up more money and how much cash you will need to complete your projects. You can pre-qualify for your loan online or through the phone.

5, Get all the Documentation

Make sure that you have all the needed documentations before starting to fill them out. This will save you time on searching for missing papers or your application being sent back due to it being incomplete. Some of these documents include proof of employment documents, proof of supplementary income, tax-related documents, and general identification papers.

6, Review all Details

Never sign any loan documents without reviewing them in detail first. You need to make sure that all rates and terms that you were promised are spelt out in the paperwork. You don’t want to get bitten by unseen or a missed clause later on.

Once your loan has been approved, you can start your home improvement projects by doing so yourself or hiring a contractor to help you out. Whichever route you choose to take, make sure that the financial aspects regarding your project are taken care of.

If in dought, contact a quality service company that can give you the best advice like C Vella Plumbing & Electrical. These guys cover all services like Plumbers Townsville, Electrical & Airconditioning. Because this company has a diverse area of knowledge, they will steer you in the right direction.

 

house for sale

5 Tips to Get a Good Price for Your Home

Selling your house can be an arduous task as you show it to potential buyers and hope to get a price that far exceeds your expectations. However, there are some tips that can ensure that this process becomes worth all the hassle by getting a good value for your home:

1. Have realistic expectations about the value of your property

Mortgage experts advise on staying realistic about the price of your house by taking into consideration the average 5% depreciation in property prices each year. The key is to entice the buyer by offering a price lower than your initial asking price but higher than his desired price.

2. Estimate the appropriate asking price

The right price would neither deter potential buyers nor would it have you end up receiving a lower price than your house is actually worth. Do your homework before setting the asking price- compare with other properties and obtain valuations from different estate agents. Avoid setting the highest valuation as your asking price.

3. Do touch-ups before putting your house up for sale

It is extremely important to create a good impression on the potential buyers while showcasing your house. Clean the house, fix anything broken, mow your garden, get the walls repainted, hire a Townsville Carpenters for any carpentry work that needs addressing- the expenses incurred in result will be more than compensated for once you sell the house for a good price. Sell out any clutter or old possessions that you no longer need.

4. Get yourself the right estate agent

Search for an agent that comes with lowest fee and shortest binding period. Once you realize that all the agents are asking for almost the same percentage of the selling price, choose the one that requires the shortest lock-in period as this will allow you to get another agent if the first agent fails to hold his end of the deal.

On average, agents charge 1% of the selling price and ask for a lock-in time of one week. Try to negotiate them  down to these terms.

5. Exercise haste for the exchange of contracts

Try to get the exchange of contracts done as soon as possible to deter the buyer from looking into more options. Check in with the estate agent and the buyer on a frequent basis to make sure the things are proceeding smoothly and there are no hindrances.

Hope you have a good time selling your house by following these tips.

5 Tips to to get Approved for a Home Mortgage Loan

The process of applying for home mortgage loan is not only frustrating in itself but can leave one more stressed out if unsuccessful. However, following these tips can spare you from the latter by making sure that your application isn’t overlooking any important parameters.

1. Be aware of your credit score

credit scoreSome potential borrowers don’t realize the importance of having and ensuring a good credit score and credit history for filing a home loan application. Credit fraud can also lead to rejection of your application.

Credit history and previous activity is one of the major determinants of the approval of a home mortgage loan application. To improve your score, make timely payments and curtail your debts.

2. Add to your monetary savings

Having a sufficient reserve of cash savings can help speed up your application processing as well as prove helpful, otherwise it may be rejected. Down payment is determined by the types of the loan and the lender. The minimum is usually 3.5%. Apart from this, there might be other costs involved such as application fee etc.

3. Stick to your job

Don’t leave your job before the closing of home mortgage loan. The application process is very sensitive to the borrower’s income or employment status and quitting a job would reflect negatively on it causing it to get delayed or stop.

4. Pay your existing debts and don’t acquire more

You don’t need a zero in your credit column for the application but the lesser the credit balance, the better. Your debt history plays a major role in your application, so does your debt-to-income ratio. Having a low debt ratio and excessive credit card debt can lead to rejection of your loan request or a lower mortgage offer. Avoid new debts or lenders may hamper the closing of your mortgage based on new credit activity.

5. Keep your affordability in check

Don’t go for a home that is not within your affordability limitations and budget. Lenders are reluctant to give a go-ahead to the borrowers that are applying for more than what they can afford.  Lenders don’t give due weight to your necessary expenditures when pre-approving loan; you should do it yourself to facilitate your expenses.

Here are some useful mortgage tips for first-time home buyers:

Keeping these tips in mind and being more careful before applying for a home mortgage loan would increase the chances of your loan application being accepted and will save you a lot of trouble.