Do not forget the cost of labor to fix up your home.
You can save some money on a home purchase by buying a foreclosed home. Banks often sell foreclosed homes at deep discounts, but the bank will sell the house to you in "as is" condition. Depending on the condition of the house, you may need to invest money into fixing it up. If you do not have the money on hand, you can borrow what you need for repairs through a home equity loan, line of credit or personal loan.
Instructions
1. Estimate how much money you will need to complete the home remodel. Request an estimate from a licensed contractor, or compile your own estimate if you plan to do the work yourself. Do not forget to account for materials, tools, supplies and labor if you need to hire a contractor to complete some of the job.
2. Decide what type of loan will fit your needs. If you have a smaller project, a personal loan may cover the cost. You can open a personal loan for any reason, including home repairs, and pay the loan back in installments. If you need a larger sum of money, you may want to open a home equity loan. With a home equity loan, you can borrow against the equity of the house you purchased. If you are not sure how much the remodeling project would cost, you may want to open a line of credit at your bank. This works similar to a credit card; you can continue to draw off the account until you reach the available credit limit.
3. Apply for a loan or line of credit at a bank. Visit a branch of your bank in person and ask for a loan application. Complete the application and submit it to a bank representative. You will need to supply pay stubs or proof of income and complete a credit check.
4. Discuss your options with your bank representative. The type of loan and amount you qualify for will depend on several factors, such as you credit score, income level and history with the bank.
5. Decide on a type of loan. Review the loan documents carefully. Make sure you can cover the cost of paying the monthly installments. Sign the loan documents to receive your money.
Tags: equity loan, home equity, home equity loan, line credit, personal loan
