Whatever you’re choosing to do to your home in the Minneapolis area in terms of improvements or remodeling, it is important that you have the right funds to keep the project going. Of course, for most people that means obtaining financing. Often the preferred choice is a home improvement loan. There are some specifics that you have to keep in mind, as you would with any loan, so you can have the best outcome.
Here are the steps you should take to secure a home improvement loan for those changes you want to make.
Know Your Credit History: Not only does the number on your credit report make a difference, but so does that history. You should have a long line of positive reports. Having a higher score means that you will get a better rate, but lower scores do not disqualify you entirely. A lender also looks for a solid history of making payments on time.
What is Your Equity Like? Having a decent amount of equity in your home will help you leverage a loan for the repairs or remodeling you’re planning. You need to show that you can afford the loan and your other debts without any issues in the process. But the lender also wants assurance that the value of your home is sufficient to back the loan.
Estimate the Cost of the Project: Know how much you need to borrow and then add a bit extra on top of that for any unforeseen costs. It is good have a budget, but you need to also plan for those unexpecteds, as they almost always happen. Requesting estimates from a handful of contractors is the best way to get a solid idea of the cost. But remember, contractors will estimate on observable conditions, and it’s not unusual for problems to be discovered midway through a remodeling project. That warped and cracked siding you are having replaced could be hiding some damage to the wall underneath. The cost of repair (which of course would be necessary to complete the siding job) would be in addition to your original contract amount.
Get an Appraisal: Having an appraisal is often required by the bank that is going to be giving you the loan. They want to make sure that the home (along with the estimated value of the improvements) is actually worth what they are lending. Don’t let this deter you, because it’s to your benefit as well. You can also get more information about your house during this process. Knowing the appraised value of your home can be helpful when your next property tax statement comes along.
Having these items in mind can help you when it’s time to finance the project. Of course, if a home improvement loan is out of reach, there are other options available. We’ll cover some of those in a future post. Speak with us here at Window Outfitters if you have questions about exterior remodeling such as siding, replacement windows, entry doors, and more. We are a licensed Minnesota home remodeling contractor, and we serve the greater Minneapolis metro.
Window Outfitters is a premier Window Replacement, doors, siding contractor and installer. As Contractor in the St Paul, Minneapolis, (Twin Cities) Minnesota (MN) metro, we proudly serve, but are not limited to, the following areas: Minneapolis Energy Efficient Vinyl Windows, Replacement Window Contractors Minnesota, Burnsville, Apple Valley, Lakeville, Savage, Bloomington, Edina, Richfield, Eagan, St Paul, Hastings, Minnetonka, Plymouth, Maple Grove, Eden Prairie, Farmington MN, Chaska, Shakopee, Chanhassen, Victoria, Mendota Heights Anderson Windows Minneapolis, Marvin Windows Minneapolis.
