How To Get Approved For A Home Renovation
The latest applicant for a home renovation loan is planning to update their kitchen and two bathrooms in their house. Most consumers realize that these rooms are the most expensive rooms in their house to renovate since in most cases the cupboards, the sink, and all appliances along with electrical wiring and plumbing are usually replaced. This is part of the updating process to ensure that a new design meets the consumers current requirements as well as prepares the house for the resale at some later point in time. Many consumers will apply for a home renovation loan to help them deal with expenses that they are facing. Depending on their credit rating, and the amount of equity in their home many consumers can get a very competitive loan and interest rate if they have lots of equity left in their home.
This consumer should be able to be approved for all renovation loan quite easily since they have great deal of equity in the house, stable jobs and no debt to speak of. They also have an excellent credit rating. They should be able to be approved for a loan at the lowest interest-rate available.
The cost of the renovations for the three rooms will be approximately $65000 and they are allowing $10,000 for contingencies which is a good plan. Most large projects of this type do incur some sort of change and also surprises necessitating more expense. Another point that we would like to make is that the expenditure of this amount of money will not necessarily make their home worth more money. It will certainly improve the value to the owners, they will get to enjoy their kitchen and bathrooms, however like most large renovation projects of this type, they do not always add the full value to the value of the home.
The best way to answer the question, how to get approved for a home renovation loan, is that most home owners should use the equity in their homes as security and either apply for a new mortgage incorporating the amount that they need in the new mortgage, or they should arrange for a line of credit which can be used as needed. for many people this is a better option since they do not need all of the money up front and will only draw on it as the work is completed and the invoices for the material arrive and the work is completed.
DEFAULT LOAN APPLICATION FOR BORROWER’S INFORMATION
Home/Mortgage Loan Amount :: $75,000
Home Loan Application and Processing Speed (when do you need the funds)::In the next several weeks
Do you currently have a mortgage? :: yes, a small one. we have lots of equity in our home
Bank Name and Branch :: Wells Fargo Bank, Lincoln Ave
What City/Town, State and County do you live in? :: Anaheim , California
Zip :: 92801
What is your employment field? :: Hotel Management
Employment Position :: Conference and Venue Management
When are you paid? (monthly/weekly/biweekly):: Biweekly
Your credit rating to be – excellent, fair, or bad? :: Fair
How did you find us? :: Looking for renovation contractors and notice that lenders are willing to provide renovation loans
How are you paid? (direct deposit/paper check):: Direct deposit
Gross Amount Per Paycheck :: $2500
Do you agree to have this information published online, without your PRIVATE information of course? :: sure, however please do not mention my employers name, this is really a private matter
Extra information here please (some detail):: we are planning on redoing our kitchen and two bathrooms in our home. We have lived in her house for over 25 years and it’s time to have some renovation work done on these rooms. We have received quotes for both bathrooms as well as the kitchen including new appliances. We have a pretty good idea of what the cost will be and we’re adding $10,000 for contingency costs that may arise.
We have been searching for contractors to do the renovation work for us and noticed that in the search results there are many lenders who are willing to help out with providing loans for renovations. We were planning to go to our local bank to apply for a home renovation loan however we thought we might look online as well and determine if we can get a better deal. Can you help us with this?
Note to Lender :: we are currently working for the city however we plan to retire in the next 2 to 3 years. Our house is almost paid for and we have sufficient equity we believe to have a line of credit or a home renovation loan. Our credit we believe is excellent and we have no significant loans at this point in time.
Other than applying for a mortgage for a house, we have never applied for a home renovation loan and we’re wondering how to go about applying for a home renovation loan to obtain the best interest rate and terms. We are wondering if you can help us and also give us an indication of what the cost might be for a loan of this type?
|Category: Home Mortgage Loan||APR 4%||APR 6%||APR 8%|
|Length of Term||25||20||30|
|Amount to be paid||$150,164.46||$160,246.80||$220,328.77|
|Total interest paid||$50,164.46||$60,246.80||$120,328.77|
|Paid per installment||$493.69||$658.55||$603.64|