How Personal Loans Can Help Finance Your Home Improvement Project

Written by E.Fiddler Posted On Sunday, 19 November 2017 18:10

Making some makeover and renovations to your current home has a good impact on its value as this could boost appeal to the buyer that will increase your home’s marketability and worth even. Projects like this can emphasize some features and enhance details that will give you the same objective – to get only the best value for your house. However, revamping your living space also comes with a lot of costs. The exact cost will depend on its size, the place you live in, and just how much of a face-lift it needs. So where will you get all this money to finance your home improvement project? If you don’t have cash on hand, getting a personal loan is one of the best ways you can resort to.

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What is Personal Loans?

A personal loan is a solution for instant cash. It is a type of unsecured loan to help you meet your current and immediate financial needs. Here, you do not need any security or collaterals. This type of loan gives you the flexibility to use the funds as per your convenience and needs.

A personal loan is not one-size-fits-all as there are several options available for you to choose from. This may include convertible loans, fixed-rate loans, installment loans, payday loans, single payment loans, and even variable loans. Each type serves a purpose so it is very important for you to understand how to obtain the best type of personal loan for you home revamping project.


How to Get Personal Loans for Home Improvement?

As mentioned above, personal loans are unsecured, meaning you don’t have to pledge your home as collateral like you would in other types of loan. Availing one for your home improvement project is a good choice in many circumstances.


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There are a lot of banks offering personal loans for this purpose. And the process for applying for these loans have become less tedious because they offer instant approval cash loans that enable you to apply with minutes. If you have a stable job and are earning enough to cover the minimum salary requirement, you can get your loan sanctioned with ease. You just have to submit some documents like salary slips for the last three months, bank statements, employee identification, employment credentials and other personal details.  Also, specifically for house remodelling projects, the total cost of renovation including the labor charges must be calculated first before application. And once you already have the estimated cost, the bank will begin the personal verification process. This comprises verification of the estimate you have provided and the legitimacy of the papers you have submitted for the loan application. They may also visit your project site as they have to carefully validate the type of renovations and the corresponding costs before approving your loan application.

So make sure all of your pertinent documents are complete and valid to have your loan disbursed quickly so that you can get your job started.


Personal loans aren’t just dealing with debt

Personal loans are often regarded as the best resort by those who need to consolidate their debts or pay off medical expenses and some other medical expenses. But these are not the only function a personal loan could serve. It could be also used for your dream vacation abroad, purchasing your own car, and for taking care of necessary home repairs now which could be adding up to unrealized costs. Remember that quality renovations don’t come cheap so it really makes sense to get a personal loan a useful and accessible source of funds.


Which personal loan is best for your home improvement project?

There are so many services available that may sound appealing to you for your home remodeling project. It all depends on things like your credit and the amount you plan on requesting. Some sources of personal loans for home improvement are some federal programs and various types of online lenders. For example, you can avail the peer-to-peer lending process if you would like to get as far from the traditional bank loan experience. This peer-to-peer lending process lets you create a listing that tells potential lenders about who you are and why are you lending the money. examples of this are Lending Club and Prosper. But these two needs a good credit score (660+ for Lending Club and 640+ for Prosper).


On the other hand, if you are worried about your credit built, you can benefit from applying for a loan from SoFi or Upstart. These are very useful for recent college graduates because these will only require academic performance alongside financial factors and work history. Also, people who don’t have stellar credit can turn to Avant which is the only personal loan service that considers those with credit scores under 600.



Author Bio:

Erin Fiddler is an online financial consultant for Cash Mart. She works in financing for over 5 years and is an authority on emerging financial services. She also writes on trends in the industry such as consumer lending loans, stock investing, and retirement plans.


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