There is no such thing as a perfect home. Every now and then, your home will have little damages of various proportions. Some damages can be repaired easily, while others must be fixed through a costly renovation.
To help homeowners deal with their repair problems, lenders have created home renovation loans. These loans are specially meant for homeowners who want to renovate areas of their homes but are short in cash. Generally, home renovation lenders can provide solutions. However, there are some instances when these lenders tricked people through different ways.
Here are some basic ways to avoid being tricked by home renovation lenders:
Know the Full Value of Your Home
Borrowers who ended up paying huge fees to home renovation lenders are those with little knowledge about their homes. Knowing and understanding the full value of your home is important because you can have a clear expectation about the lender’s upcoming rates. So, how will you know the full value of your home?
You can do the hard work and run up with a quick estimate. Alternatively, you can hire the services of a home inspector. The inspector will take a quick look at your home and give you a detailed report. This report can be your proper guide.
Watch Out for ‘Tricky’ Agreement Clauses
Lenders tend to bring out confusing agreement clauses that will force you into paying additional fees per month. Not all home renovation lenders are doing this, but some are notorious for the tactic. Always review the agreement and watch out for any clauses that may be confusing or contradicting. Your eyes may not be trained enough for this, so you can try asking for help. Ask some financial experts so your knowledge can expand.
Do Your Research
Research is important before putting your trust towards a home renovation lender. What are the things that you must research about? First, you need to know the status of the home market. This will help you estimate the correct range that lenders must offer. Afterwards, you need to know what other borrowers are thinking. Are there some specific trends driving the home market forward? More importantly, you should know if the damage of your home can be repaired by few people. In that case, you can forget about getting the loan.
Find the Top Five Home Renovation Lenders
Going for the first lender that will pop up in your search is very risky. To manage this risk, you need to come up of multiple lender options. Five is a good starting point. Filter your home renovation lender search according to location and the best reviews. Focus on lenders with many positive, unbiased reviews. Social media can also help you find the ‘top five’ lenders within your area.
Home renovation lenders can make your dream repair possible, but don’t let them dictate the terms. Be firm with what you want. Negotiate. If the agreement is not favourable, don’t sweat it – look for other lenders instead!