May 15th, 2013
Financing Home Improvements: A Step by Step Guide
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**Today’s guest post is contributed by Brandon.**
Financing home improvement projects doesn’t have to be complicated. If you follow some simple steps to determine what type of program best fits your needs, you’ll be well on your way to getting your loan approved and getting your project started.
Step 1: Know Your Credit Scores
Many programs require minimum credit scores in order to qualify. If you don’t already know your scores, you can check them for free from Credit Karma .There are programs available for all credit types, from excellent to bad credit.
Step 2: Determine How Much You Need for Your Project.
This includes getting estimates from qualified contractors and determining how much cash (if any) you want to put towards the project. This will give you the final amount that you’ll need to finance.
Step 3- Narrow Down the Loan Programs That Would Best Fit That Amount.
Our research shows that most projects that are under $15,000 are best financed by 0% or low interest credit card products. Projects that are between $15,000 and $50,000 are generally a good fit for a personal or unsecured loan. Any loan amount that exceeds $50,000 is typically best financed with a home equity line of credit or a cash out refinance mortgage. You can use a simple home improvement loan calculator to run some payment scenarios to see what would best suit your budget.
Step 4- Find the Best Program.
Many contractors partner with finance companies that specialize in financing home improvement projects. Ask your contractor if they have a company to recommend or find one by researching online.
Step 5- Give Yourself Enough Time to Get the Loan Approved and Funded.
Many credit card issuers can give instant approval but it can take about a week for you to receive your card in the mail. Personal loans companies can also give you a very fast approval but it can take one to two weeks to get your loan processed. The home equity and mortgage programs not only require the most paperwork and fees, but also can take anywhere from 3-5 weeks to fund.
If you follow these simple steps to financing your home improvements you will ensure that you find the best financing program to suit your project and your family’s financial goals. Good luck!
Brandon Perry is the President of AMS Financial Solutions, Inc., a consumer finance company serving the Home Improvement, Swimming Pool, Medical & Dental, Travel, and Wedding industries since 2004. AMS services consumers direct and partner with thousands of service providers in these verticals to offer financing programs to their customers.
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