Home Improvement, Home Equity in disguise

When you want to improve your home, the cost of materials and various expenses begin to add up to enormous sums. You want to get it done all in one go, instead of spending six months or more with sand, sawdust and a stink of paint all over the house. Solution, a home improvement loan.

It’s A Long Deserved Prize

You and your family deserve this treat, after waiting for a number of years. The kids have grown up, but their marks on the walls, doors and ceiling are still there. So, you begin to make plans.

The first question you ask yourself is where to get the money from. It is good advice to avoid grabbing a loan, first off.

However, it certainly will make you feel that you can get by without asking for anyone’s help. So, what type of loan? One that is ideal in this case, is a home improvement loan. It works in a similar way to the home equity loan, but since the purpose is fixed and a very special one, it will also be a special loan.

Home Equity In Disguise

The security for this type of loan is the equity on your home. So, considering that not only is it a low risk loan for the lender, but in addition, the property itself will acquire more value before the payback period is over, the conditions are even better than for a home equity loan. As a consequence, the equity will be higher before the payment term is over.

The General Considerations

Always give yourself a couple of days to inquire about the conditions that a serious, reliable lender will be willing to give you, for your case in particular. So give detail of your financial situation and credit report when you ask for a quote.

Preparing Your “Pitch”

Prepare well-laid-out plans of all the changes or additions you want to make. This will give your lender the idea that you are organized and don’t do things in a hurry. Accompany a budget of the whole operation. Materials, plans, supervision and any special permit that your local City Hall might require.

A Good Image

All this contributes to a better image and therefore a better negotiation capacity. Prepare your meeting in advance. Not necessarily word by word, but all the points you want to ask for and everything the lender might oppose to them. Special length, no fee, fee spread out throughout the term, APR and all you can think of.

Skip Payment

In some cases, say, for a long payback term, the lender might allow you to skip a payment, considering annual vacation and/or Christmas. The only thing this does is that it lets you skip a payment, that’s all. The term is lengthened in one month, accumulating one month more of interest.

Plenty To Chose From

You’ll find Internet full of loan advertising and there will always be one just right for you. If you have any doubt or want to test yourself, first ask a lender you will NOT take a loan from. Once they give you an answer, go to the lender and ask the same question, with a negotiating edge… your creativity goes on from there.

by Kate Ross

Via : www.americanchronicle.com