Home renovations can be very expensive, but also an absolute necessity!
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Over the past year, a do-it-yourself do-it-yourself trend has taken over the world. With millions of people disabled and forced into self-isolation, there was very little to do. Working on your own home at a time like this can not only keep you busy but also be very productive. This article will teach you how to finance your home renovation:
Take out an unsecured loan
The most obvious method of financing a home renovation is by taking out a loan. An unsecured loan is one that does not require any collateral. Most unsecured loans are deposited into your bank account on the day the application is accepted. According to that Red Bluff loan officeruff, Jody Bartley, a loan can be a great way to fund your home renovation. In terms of the amount of money you can borrow, some unsecured loans are capped at around $ 20,000. Anything beyond that and you may need to provide collateral or a surety. That said, it is entirely up to the credit company you are dealing with.
A bank loan
Alternatively, you can take out a loan from your bank. If you are a loyal customer and your bank account shows that you can afford to pay back the loan, then you should have no trouble getting the loan. Much more serious, however, is a bank loan. If you fail to repay your loan, you can have an attachment order drawn up and the bank will not hesitate to send bailiffs to take your money back. Bank loans tend to have lower interest rates than unsecured loans, but are often repaid over longer periods of time.
Government-supported loans and grants
In some cases, you may be entitled to access to government-supported loans and grants. At the moment there are two government-sponsored home improvement programs that you may be eligible for. Local programs may also be available through your local authority. Well worth checking out the 203 (k) Rehabilitation Mortgage Insurance Program and the HUD Title 1 Property Improvement Loan. Both have very strict criteria. However, they are very useful when authorized. If you are a veteran, you may also be eligible for scholarships that are only available to veterans and ex-enlisted men.
Rescheduling your home
Another option is to repackage your home. When you repackage your home, you are essentially taking out a loan on your property. If you default on payments and don't pay back this loan, the bank can repossess your home. Rescheduling your home is not something to be taken lightly. It takes a lot of thought and planning. Ideally, you should exhaust all other options before deciding to repackage your home, especially if you are nearing the end of your mortgage term. Rescheduling your home can come in very handy when you need large sums of money.
Mom and Dad's bank
If your parents can do this, your best solution may be to let them loan you the money to do your renovation. Borrowing from the family gives you a more flexible repayment schedule and also means no one will show up and repossess your home if they miss a payment. When borrowing from family members, you should be careful and always stick to your payment arrangements. It is very easy to destroy a relationship by not paying back relatives you borrowed from. Don't make false promises that you cannot keep when you repay.
Ask a friend
If your family can't help you, maybe a friend can. All of the rules about borrowing from your family apply to your friends as well. When turning to your friends for borrowing, be careful. If you know they are going to give you the money but would suffer in the long run, then don't ask. Only borrow from friends who you are sure can afford. You can also suggest signing a contract promising to repay them by a certain date.
If you have investment accounts, you may want to withdraw to pay for your renovation. If you have the money there why not use it? Some financial experts say it is better to take out a loan than plunder your savings or investments. This is stupid. Instead of amassing lifelong debt to finance it your renovationWhy not pull out of investment to pay for it? You need to reorganize your investment portfolio, but debt won't slow you down in the future. If you have gold or silver, you might want to sell that too.
If you own a piece of land or property, consider selling it to fund your renovation. To stay in line with our last point, if you can pay for the renovation yourself, why go into debt? However, if you have a lucrative rental property it would be foolish to sell it and it might be easier to take out a loan and repay your debt through the returns on the property. If your property or land isn't making you money and just sitting there, then you might want to consider selling me.
You might consider asking your employer for an advance. In many cases, when you've proven yourself to be a loyal and dedicated employee, your boss should have it no problem getting you an advance on your paycheck. You probably won't get enough to fund a renovation, however. If you've got some savings aside and need a little top-up, an advance from work can be a great option.
Budget and plan
If you can find the money to do your renovation, budget and plan carefully. Many people's renovations fail because they don't think twice. Try to save money and come up with a comprehensive plan that will cover all aspects of your renovation.
Home renovations are a great way to keep yourself busy and add the price of your home. With all of the suggestions made here, you shouldn't have any problems funding your renovation!