Getting a Home Improvement Loan: What Your Bank Needs
The popularity of stores like Home Depot and Lowe's show how many homeowners are jumping on the home improvement bandwagon.
Maybe you're thinking of redoing part of your house as well. Perhaps you want the kitchen of your dreams or an extra bathroom.
You know you'll have to take out a loan to finance the project, but if you're just in the beginning stages of the planning, you
may not know exactly how to go about it. Whether you're refinancing or taking out a home-equity loan, here's some information on what your bank needs:
As with any loan, your bank will want to review your financial history before approving you for a home-equity loan. While
different banks will have different loan criteria, there are a few things you can expect each institution to require:
-Your address and how long you've lived there
-Your employment history and current employer
-Your annual income and assets
-Your total debt and monthly obligations
For home-equity loans, the bank will also need information on your house such as its age and current property value. Save time
by bringing the current tax assessment for your property with you. For smaller loans (usually $2000 or less), this may be
enough information to indicate the home's market value to the bank's satisfaction. However, for larger loans, banks will
require professional appraisals. Home appraisals typically cost $200-$300.
Above, I mentioned that banks want to know your total debt and monthly obligations. Specifically, they want to know your
debt-to-income ratio. If your debt is greater than 30%-40% of your monthly income, the bank may be unwilling to offer a loan out of fear that you will not be able to make payments.
To further protect their assets, the bank will require a copy of your credit history to make sure you're not a bad risk. A few
months before you decide to take out a home-equity loan, it's a good idea to get a copy of your credit report and check it for
errors. Contact the credit bureau and correct any errors ahead of time. This will save time later and help you get the right loan for your home improvement needs.
TC Thorn writes for http://www.luxuryhousingtrends.com
This article may be reprinted so long as a link back to the site is included.
MORE RESOURCES updated Tue. October / 16 / 2018
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
How Credible worksCredible News (blog)It's quick and painless. Tell us a little bit about you and your home to get accurate prequalified rates without impacting your credit score. 2. Compare rates from multiple lenders. View the interest rate and cost breakdown of each loan to choose the ...and more »
RELATED MORTGAGE AND REFINANCING ARTICLES:
Home Equity Loan Improvements
There's more Regulation Z compliance on the way, courtesy
of the Home Equity Loan Consumer Protection Act. This fall
banks will have to implement the new home equity loan
disclosure rules the Federal Reserve Board was required to
issue under the act.
Online Mortgages in 5 Easy Steps!
We're all entitled to the opportunities and benefits of
home ownership. But because most of us aren't loaded with
cash, we must find banks and lenders to assist us with
Buying a Home With Bad Credit - Why a Recent Bankruptcy Will Not Stop You From Getting Approved
Buying a home with bad credit is possible with the help of
a subprime lender even if you have a recent bankruptcy or
foreclosure. These mortgage lenders specialize in financing
home loans for people with poor credit.
Adverse Credit Mortgage Loan - Persistence is the Key to Getting Approved
People with bad credit that are looking to get a home
mortgage loan or to refinance their existing home mortgage
loan, know how difficult of a job it can be to try and get
approved. Adverse credit history can mean a little more
legwork to get an approval for a mortgage loan, and
especially to get a decent interest rate.
Home Equity Loans - Are They Right For You?
The bills are out of control and you need a new car. "Maybe we can get a new carpet and paint the house", you say to yourself.
Home Equity - Is it Time to Cash Out and Move?
During the last five years, home prices have increased
nationwide. In some parts of the country, notably
California, home prices have doubled or even tripled.
A Simple Way to Save Thousands on Your Mortgage Charges
How many times do you check you restaurant bill? If not
often, I would advise you to do it more, especially when
dining on your overseas vacations. Still, much more
Americans check their restaurants bill, than the number of
homebuyers, who check the charges for their mortgages.
Low Home Mortgage Interest Rate - Finding the Best Mortgage Rate
Interest rates are at an all time low, making now the
perfect time to purchase a new home or refinance your
existing mortgage. The interest rate you receive will
depend largely on your credit rating, monthly debt, and
Home Equity Loan or Home Equity Line of Credit - Which is right for you?
The most common type of home equity loan is the term loan. This loan is set for a fixed amount of time, anywhere from five to fifteen years.
Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You?
When you're shopping for a new home-especially for the
first time-all the terms and expressions may be confusing
and difficult to understand. Adjustable rate, fixed rate,
balloon payment - how do you decide which is the right type
of home mortgage for you if you're not even sure what each
of them are? The name of the mortgage type usually has to do
with how you'll pay for your loan - how the interest on the
loan is being determined by the bank.
Bad Credit Mortgage Lender - What to Look For
If you have less than perfect credit and are looking to get
approved for a mortgage loan, be careful not to make some
common, costly mistakes. When dealing with sub-prime
mortgage lenders or bad credit mortgage lenders, many
people are taken advantage of because of their eagerness to
No Fee Mortgages Coming Soon
Buying a home, especially for the first time, can be a
daunting experience. There are endless credit checks, bank
checks, employment checks, appraisals and more paperwork
than seems to make sense.
VA Loans, A Gift from Uncle Sam
Uncle Sam has a gift for the men and women who serve our country. It is the VA loan.
Mortgage Calculator - How to Calculate Your Monthly Mortgage Payment
Just starting to shop for a new home? Do you want to know
how to figure what your monthly payment would be based on a
certain priced home? No problem, there are plenty of
mortgage calculators on the web you can use free of charge
(click here for an example of one). All you need to know is
the mortgage amount, sale price less the down payment,
interest rate (also easy to access on the web), and the
number of years you wish to finance your new home, usually
30 years (360 months) is the maximum term.
Home Equity Loan Considerations
In other words, the benefit of the loan must outlast the loan period. Taking a loan for financing that elusive vacation is a strict no-no.
Understanding Fixed-rate Mortgages
A fixed-rate mortgage is a mortgage on which the interest
rate is set for the term of the loan. Your interest rate
stays the same for the term of the mortgage or for a
specified period of time.
How Much Interest is Your Home Equity Earning?
How much interest are you earning on your home equity? If
you answered nothing, zero, zilch, zip you are correct.
What would you do if you could get triple compounding on
your equity? Would you take action and build a fortune that
would allow you to pay off the mortgage and create a
retirement fund? We use a strategy called Early Mortgage Pay
Off System or EMPOS?.
Home Equity Loan vs. 401(K) Loan -- Which Should You Choose
Home Equity Loan vs. 401(K) Loan. You've finally decided to
add that patio you've always wanted to your home.
Remortgage Debt Consolidation - The New Recourse For Credit Crunch
Shakespeare once said about human nature 'with nothing
shall be pleased, till he be eased with being nothing'. It
is human nature to not be satisfied with anything for long.
A Home Equity Loan - What You Should Know?
Asking yourself, "Is a home equity loan right for me?" is
the first and most important step to take. Home equity loans
have become so popular today because of increasing home values.
used office furnishings-supplies-equipment-desks-cubicles-service-counters for
sale in Akron Ohio
Die cast model cars for sale in Akron Ohio
used cars for sale in Akron Ohio
unfurnished homes for
rent in Akron Ohio
ARM compare rates find the best rates current in your area lenders read reviews calculator adjustable rate loan home lenders brokers
quotes florida houston gmac washington interest only 2nd software debt consolidation
reverse senior equity texas maryland options lending bad credit
option one ameriquest chase first banks emc residential california miami dallas est branch marketing
home company commercial yahoo online bad credit low credit no credit