Home Improvement Loans California
If you’re a homeowner, you know that the current market has been very volatile. Housing prices and home sales are at their lowest in quite some time, and many housing prices have seen a constant decline in recent months. For those living in the state of California, the marketplace is especially competitive. While in most parts of the United States, the price of housing remains mostly consistent with the average mean income of most families, in California it seems that the price of housing is through the roof. As a home seller, it’s important to keep that edge when putting your house up on the market for sale. Fortunately, home improvement loans California can help you get some extra money from the equity you’ve built in your home in order to improve and sell it. These kinds of loans are also known as home equity loans, and are a great help to home owners who want to make major or even minor improvements to their house such as adding a new room, remodeling a bathroom or kitchen, or changing their siding or adding a new roof. These are just a few examples of what could be done with home improvement loans California. The money that the borrower receives can be used at their discretion, and in some cases, buyers also choose to take out money to help repay other debts such as high credit card balances. These kinds of loans are often called second mortgages, because the borrower is borrowing against their home. This means if they default in repayment, the bank could place a lien on the house and they could possibly lose their homes. That’s why it is very important for people who do take out home improvement loans California to be sure they are able to handle the extra payment. Another suggestion is to only take out what you plan on using, that way you do not overspend and end up owing more than you bargained for. Some people borrow too much and end up getting in over their heads, so it’s important to speak with a knowledgeable broker or loan officer who can assess your needs and what you can really afford to borrow.
Just like any other loan, there is certain criterion that must be met before getting home improvement loans California. Most programs are FICO based and have minimum FICO score requirements. This means that the borrower must have good credit, and usually the lowest acceptable score is about 600 to 660. Those with a higher FICO score have a better chance of getting more favorable interest rates and of getting approved. In most if not all cases, the very minimum amount the borrower can own their home before applying for a home improvement loan is six months. Also, the lender will order an appraisal of the property to make sure it has increased in appraised value and has earned some equity. The borrower must also have had no bankruptcies or foreclosures on previous homes for at least the past two years. This shows the lender that the borrower is responsible and can handle their monthly obligations. Income must be verified which usually consists of your employer completing and signing a form, followed by a phone call to be sure you are currently employed. This entire criterion is set in place to ensure that you as a borrower will be able to pay your monthly payments on time and are trustworthy. Once you receive the home improvement loan, you have money to do whatever you choose to your home to make it nicer and improve on any number of aspects. It can increase the value of your home, and you can then sell it to increase profit, or just stay in it and enjoy the new additions or renovations that you’ve made with your new home improvement loan. Some home improvement loans have benefits like tax deductions, so make sure you check with your CPA or tax advisor for more details. The money can be used for just about anything including vacations, college tuition, a new car, or paying off some older debts from other debtors. With a home improvement loan you often get a better rate than other types of loans. This can help to improve your monthly bills and consolidate everything into one easy payment.