Make home repairs with bank-approved funding.
Home repairs enhance a family's lifestyle and increase the overall value of your property. When your home needs major repair work, a new roof or a siding job for example, covering the costs can become difficult. Finance your home repairs with one of two types of home equity loans. Before beginning any repair work, learn as much as you can about home equity loans, and do everything you can to qualify for such a loan. Does this Spark an idea?
Instructions
1. Devise a plan qualifying you for a home equity loan, and analyze your credit card debt. Pay down credit card balances below 50 percent of the card's limit.
2. Identify companies offering home equity loans in your community. Credit unions, banks and mortgage companies all offer home equity loans; each may have different terms and conditions.
3. Investigate interest rate charges for home equity loans available within your community. It pays to shop around. Different financial institution may have different interest rates.
4. Decide which type of home equity loan best fits your needs -- either a loan based on a revolving line of credit from which you withdraw money as you need it or a lump-sum payment to cover the entire cost of home repairs.
5. Support your application for a home equity loan with copies of written estimates secured from contractors. Request a loan amount 15 percent greater than the expected costs so that you can offset unforeseen expenses.
6. Anticipate a lender's request for income documentation. Retain copies of withholding forms, income tax returns and pay receipts.
7. Schedule a starting date for home repairs as soon as monies from your home equity loan transfer to your account.
Tags: home equity, equity loans, home equity loans, equity loan, home equity loan
