Boost Property Value with Personal Loans for Home Improvement

Prepare to have your mind blown (just a little). According to the Environmental Protection Agency (EPA), the average American will spend a staggering 93% of their entire lives indoors! Whether your time indoors involves sitting at an office desk, relaxing on the living room sofa or preparing a feast inside the 'heart of the home', you should really be thinking about making the most of your property.

Not to worry if you aren't in a financial situation where you can invest a lump sum into home enhancements, because personal loans for home improvement make the process a whole lot easier.

A question that plagues the minds of many homeowners who are considering taking out a loan is, "Why shouldn't I use the equity I have built up on my home?". The simple answer to this question is because you may experience potential conflict, due to the fact you will be expected to share profit with equity.

Home Improvement Facts and Statistics

Based on statistics published on the US Commercial Banks Commercial and Industrial Loans Chart, loan applications are up by 2.05% since last year. As more people are using personal loans for renovation purposes, the economic outlook for property selling is improving by the day.

Home improvement expenditure is forecast to reach $321 billion this year, so why not invest in your nest? By applying for a personal home loan, you can regain control of your finances and enjoy the peace of mind that your repayments are affordable, consistent and beneficial for your particular circumstances. Prior to reaching out to a reputable lender, know what to look for in a loan for property refurbishment.

Types of Personal Loans for Renovations or Debt Consolidation

One of the main mistakes caused by people who want to carry out a home renovation using loaned money is failing to carry out adequate research. This doesn't have to be very time-consuming and regardless of the time it takes, you'll most certainly make an informed decision after speaking with an advisor.

Here's an overview of the some personal loans for home improvement that could speed up the process of credit approval:

• Installment Loans - The loan is paid back in instalments, of which are decided by the lender and borrower
• Fixed-Rate Loans - Interest rates remain the same with this financing.
• Convertible Loans - These loans can be converted into the form of stock or shares.
• Secured Loans - Generally, these loans are secured against personal assets, with property being the typical asset.
• Variable Rate Loans - Fluctuating interest rates could hurt your finances if the market is unstable.

Basic Rules to Follow When Applying for Personal Loans

Honesty is the best policy when it comes to taking out a loan, even if your credit situation isn't quite ideal to begin with, it is imperative that you are truthful about your ability to pay back borrowed money. Lying about your financial situation will prevent the lender from trusting you to repay the funds they deposit into your account.

A personal loan can be applied for if you meet the following criteria:

• Receive a regular income
• Prove your identity
• Prove your residency
• Provide bank statements/paystubs
• Referral from employer or relative

Reduce the chances of breaking the rules by keeping these basic rules in mind:

• Be a Smart Borrower - An investment should be precisely matched to your needs and personal preferences, but don't let the dream result in you borrowing more than you are capable of paying back. Spread your money wisely. Putting all your 'eggs’ in one basket will give you nothing to fall back on.
• Pay Regularly and Promptly - Nobody wants to be chased for money (and vice versa). Improve your chances of gaining credit in the future by paying on-time and for the duration of the loan. Defaulting could leave your credit in the red, so don't let it happen.
• Shop for Good Rates - Interest rates change on a daily basis and although you can forecast potential changes in the market sometimes, you still ought to shop for the best rates as a way of saving in the long-term. Stay focused on the current rate climate to stay in the loop about what's a good deal and what's a rip-off!
• Read the Terms and Conditions - An online survey revealed how a mere 7% of us actually read the Terms and Conditions of a contract before signing/agreeing. Avoid surprises later down the line by thoroughly reading the document(s), twice if you have to!

How can I repay the instalments and will it affect my credit?

A lender will try to be as flexible as possible when presenting the borrower (you) with a payment plan. Loans can even boost your credit rating, because when the money is paid back on time, future lenders will see you as a reliable customer. Everyone's financial situation will differ therefore you can expect a loan company to present to with a wide range of options in terms of repayment.

Examples of the ways in which you can repay instalments for personal loans include:

• Equal Payments - Stay on track by paying the instalment rate and interest rate. You will be alerted when the loan period concludes with this option. Interest rates may change.
• Equal Instalments - Don't have sufficient funds to make a big downpayment? Pay your personal loan in amounts that depend on the interest rate.

Reselling Your Home After a Refurbishment

One report showed how homeowners improvements using a lpam actually boosted the resale value by 62%! Although you will need to invest money into the refurbishment of your home, whether it involves updating the entire property or hiring a landscaper to add aesthetic appeal, you can anticipate a return on investment (ROI). Think about installing energy-efficient appliances and fixtures that will add to the property’s worth.

Information source: https://www.gethearth.com/blog/personal-loans-for-home-improvement/

I love reading and travelling. They encourage me to derive new insights from beyond my pair of tinted glasses. I relish the simple joy of cooking a meal and sharing it with others. I enjoy researching on new market products, and maintaining my blogs.