3 Home Renovation Loan Myths Busted By Lenders
Modern lenders providing home décor or renovation loans think every part of home matters and customers should make the most out of their property. Lenders today offer flexible loan programs and lending options so that homeowners can add value to their property. Then, there are many things to factor in before taking a loan from a bank or an online lending agency. Before the nails and hammers start doing their job, there are home renovation loan myths that lending companies want to debunk. Lenders online provide easy loans so that customers can maximize the equity built on their property.
Lenders think there are always a couple of things that homeowners can change about their home. It could be big renovations or small décor items added to the living area to add more meaning and character to a property. Today, lenders recommend that the borrowers must weigh the cost of renovation and the return on that investment. According to eminent leaders in the industry, homeowners should take up home décor projects that make living enjoyable in the house as well as add value to the property.
According to an article published on https://www.huffingtonpost.in, there are a couple of home renovation ideas and if done the right way will result in a good return on investment. The lenders out there have many loan programs for updating kitchens and bathrooms.
Then, there are many home remodeling loan products to choose from and many ideas surrounding the lending options or loan programs. It makes difficult to separate fact from fiction. Therefore, here are three home renovation loan myths busted by modern lenders:
Splurging on the best materials
Lenders think that it is better to use quality home décor materials that are aligned with the rest of the property as well as the neighboring houses. Spending heavily on high-end or the best materials may sound great but it will adversely affect and minimize your remodeling ROI. Let us explain this point with the help of an example. For instance, a huge $7,000 spending on a bedroom renovation may look aesthetically satisfying but may not fetch a homeowner adequate return on sale when he or she puts up the property on sale in the years to come. So, splurging is not always a wise decision, according to professional lenders today.
Therefore, it is imperative that homeowners or borrowers should consult with a lending company as well as a real estate professional who knows about the property market in the US neighborhood and verify whether the materials for remodeling are ideal for that locality or not.
Homeowners receiving home decoration loan would get a set payment every month for a specific period, usually 10-30 years or so. Today, lenders can help you do some number crunching to figure out your ROI and include the total cost of the home renovation loan while calculating. These little things matter a lot when it comes to home renovation loans and dispelling the myths surrounding the same.
There are online lenders offering home renovation finance such as Libertylending.com. Homeowners can consult with their experts to understand which loan programs are best for their renovation needs. Professional lenders will not push customers to splurge on unnecessary home décor items that yield no fair returns.
Lenders want you to hire an unlicensed person to make you borrow less
It is one of the greatest myths surrounding home remodeling loans. Hiring an unlicensed man to decorate your living area may sound lucrative but might land homeowners in a big financial soup later. For example, a homeowner hires an untrained person to install new light fixtures. The result could be poor work and safety issues related to the electrical connections in the house. The damages require fixing and even a claim against the property insurance, if the person is injured on the site.
Modern lending companies recommend that you hire a trained and licensed contractor, verify with the local government to ensure that the person is fit for the job. The contractor must have personal liability, worker’s reimbursement, and property damage coverage. That is because lenders providing home renovation loans may not pay if an unlicensed worker claims compensation from homeowners. Modern lenders, therefore, recommend you to hire licensed workers for your home remodeling project. It is beneficial and pays off in the future. The homeowners can borrow the amount required for the renovation job and not anything less because they have hired an untrained contractor.
Basic repairs are financed
It is a lie and lenders today educate borrowers so that they are not confused when applying for home remodeling loans. The lenders recommend that homeowners can take a home renovation loan for a host of reasons like setting up a new roof, fixing the foundation of the house, repairing damp walls, and even fixing a damaged HVAC system that may pose damage to the property. It is essential for the safety of the home to make it habitable.
You can take a loan for all things that need changing to add value to the property and make living more enjoyable than ever. The lenders today want homeowners to make the most out a renovation loan and receive a fair return on investment in the days to come.
Today, lenders cite that a borrower can take a high-value loan for a complete kitchen revamp, adding another room, or improving the front garden and landscaping. One can even opt for financing for luxury home décor projects such as an outdoor barbeque area, a swimming pool, and even a tennis court depending on a customer’s budget.
The lenders offering home décor loans have dispelled the myth that only basic repairs are financed and not the luxury ones. If borrowers have the budget and can pay off the loan on time, they can opt for a high-value loan.
There are many factors to consider when it comes to home décor loans. Everything matters from the budget, decision-making, and busting the myths. Now that you know the fact, you can ignore the myths surrounding home renovation loans.