Does refinancing your home and getting a home improvement loan seem intimidating?
If you’re worried about your chances of getting a home improvement loan, you’re not alone.
Most people who own a home have the same concerns.
The key question to ask yourself when it comes to refinancing your home and getting a home improvement loan is: “Will these improvements increase the value of my home?” If the improvements won’t increase the value of your home, then you are going to have a harder time convincing a lender to give you the money.
Another thing to keep in mind is that during a recession, home values decrease and interest rates increase. Because of this, refinancing for the purpose of making home improvements may not be the smartest move during a recession.
If you do decide to refinance, state clearly to the loan officer what you want to do with the loan, and have the paperwork to back it up. This will make it easier for the lender to make a decision and increase your chances of getting a good deal.
Here are more great home improvement loan & refinancing tips like these.
You may also want to keep an eye on the trends for real estate and home building. These things could influence your decision about refinancing and getting a home improvement loan.