Top 4 Home Improvement Financing Must-Haves - The Woodlands
Top 4 Home Improvement Financing Must-Haves - The Woodlands
Published: Oct 17, 2017, 11:35am
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Sponsored article by Texas Home Exteriors:
What To Look Out For With Home Improvement Financing
After Hurricane Harvey, many Houston Texas metro area homeowners are in
need of some extra funds to help with their home repairs and/or
remodels. In this post, we are providing some great and helpful
information especially for those who have found that their insurance is
not covering the damages or your insurance has a large deductible. Our
Team at Texas Home Exteriors has put together this helpful and
informative article to help Houston homeowners learn what home
improvement project financing options are available to them and which
would be the best option to meet their needs. In this post, we have also
shared some warnings to be aware of when considering home improvement
financing.
Buyer Beware
It is important to understand what you are getting into when looking
into getting a home improvement loan. Before you sign the financing
documents, make sure that you know exactly what you are signing up for,
what you are getting! Many homeowners need the help so badly, they get a
bit hasty. We have heard stories from homeowners about how they wish
they had known what to look for as to not get taken advantage of. Below
we have outlined the four most important items to check off your list
when applying for home improvement repair financing.
1 – Ask For A Non-Lien Loan
Often times homeowners in our Houston Texas metro area will choose to go
to their bank or credit union to ask for a home improvement loan
because they personally know them and trust them. Keep in mind, banks
and credit unions often want to secure their vested interest. What this
means the homeowner is, if for some reason you are not able to pay off
the loan or you default on the monies borrowed, that the bank can take
possession of your home. If this does not sound appealing to you, you
always make sure that you secure a non-lien loan for home improvements
or repairs. This is also often referred to as a signature loan.
2 – No Surprises Hidden in the Loan Documents – Promotions & Addendums
There can be hidden changes in loan documents, this is why it is
important to review every page. No one likes surprises when it comes to
their money. An example of a hidden surprise is like with some credit
card offers, they start off with a great rate but after a promotional
period has ended, the rate jumps up, typically quite a bit.
So, when looking through the loan paperwork, make sure that you read
carefully, the details of the promotion and/or addendums which can alter
or override what you are paying. If a promotion is offered, for
instance, at a lower rate, make sure that this is for the life of the
loan or if there is an increase, when and how much to determine if it is
what you really want. As long as there is not an addendum stating that
there will be a rate increase, you are good to go. Do yourself a favor
and please take the time to look through all of the documentation before
you sign.
3 – No Prepayment Penalty
When signing for a home improvement loan, you should look for the option
to pay the loan off early without any penalty. With a no prepayment
penalty loan, by choosing this option, you are free to pay the note off
early without being charged a penalty. Some banking institutions insert a
clause in their contracts stating that you can not pay off the note
early or you will pay a penalty, this is usually implement for the first
year or two of the loan. The loaning institutions do this so they can
make plenty of interest from you on your loan before paying it off. So
if you don’t want to pay extra money out in interest and would like the
option to pay it off early, make sure you get a home improvement loan
that specifies no prepayment penalty.
4 – No Closing Cost
Lady thinking about financing for home improvements Closing Costs are
often called by a variety of names and can include numerous fees (such
as loan origination fees, discount points and credit report charges).
These are upfront fees charged to the borrower. This one is common,
especially if you are going through a bank.
It is a good idea to make sure that whomever you are looking at getting a
home improvement loan through, you know if there are additional fees
involved, especially if you don’t want to be paying additional money,
you should avoid paying any kind of closing cost. Some financial
institutions might also call this an origination fee. Either way, you
should be aware that they may try to tac on these additional fees, you
should not have to pay anything upfront such as a closing costs.
Conclusion
When looking at financing options for home improvement, don’t be too
has, know what you are getting. We hope that you have enjoyed this
informative post on how to protect yourself when it comes to home
improvement project financing. Regardless of you are updating,
remodeling or just making repairs after a storm or hurricane, we have
shared this helpful information to get you on your way. Please do not
forget the four must-haves as you move forward! Thank you from the Texas
Home Exteriors Team.
Learn more at: TexasHomeExteriors.com
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