Whether you’re buying a new home or just need to update your current home, a home improvement loan can help you get the job done. Using a home improvement loan can also help you increase the value of your home.
Home improvement can be a good investment, but it can be expensive. Make sure you’re getting a return on investment before you sign on the dotted line.
Make sure you’re using a licensed contractor. Some states have special licensing requirements. Also check with your local building codes office to make sure the work is in compliance.
Make a detailed list of the work you want to have done and compare the prices of several contractors. This can help you negotiate with a contractor and lock in firm prices.
Make sure the contractor you choose has a license and insurance. Check with your local building codes office to see if any permits or inspections are required. Also make sure the contractor has references. You can ask friends, neighbors and colleagues for recommendations.
Make sure you get a written contract that describes the work you’re asking the contractor to do. The contract should also include a payment schedule. If you’re not satisfied with the work, you can sue the contractor for actual damages or reasonable attorneys’ fees.
You can also finance your home improvement project with a home equity line of credit. The bank that holds your mortgage is invested in the value of your home, so they will approve your loan. This option is best for homeowners with significant equity in their homes.