Home Extension and Improvement Loans
These are the kind of loans that one would borrow from a bank with the intention of using the money to renovate a house or add some improvements to it. They help you add and change things in your house so you can make it up to whatever you wish. These loans can be reciprocated over a period of years. The interest rates totally depend on how long one would take to repay the loan. A processing fee is also charged for home improvement loans and these range between 0.5 to 1% of the entire loan amount.
Some features and benefits have been listed below.
Since home loans are meant to be used to refurbish your home, there are undoubtedly a lot of benefits that they offer.
– Most banks offer you with the choice of what kind of interest rates suits you so that you can choose it. It surely does not mean that you can choose an interest rate, but only how your interest is calculated.
– Some banks offer application for a loan with the help of the internet, which saves you the multiple trips to the bank.
– Some banks do not cover the entire cost of the renovation, but they will omit some expenses and cover 90% of the overall costs.
– In some cases, banks do sanction the entire requested lump sum in one transaction.
– Banks offer credit cards with the loans to sweeten the deal that you have made with them.
– Some banks ask for minimum documentation, so, therefore, there is less clutter of paperwork. As long as your credit score is good, the bank won’t suspect you a whole lot when it comes to repayment of the loan.
– If you have some prior relations or commitments with the bank, it comes with some advantages and the bank will have a lot more trust in you. If you are an existing customer, you will have 100% coverage when it comes to loans.
– You can apply for the loan individually, or you can apply for it with a spouse or a partner if you live together in the same house. This will be construed as a co-application. Some banks offer small christmas loans with very low-interest rates.
– You have to be at least 21 years of age to apply for a loan. The maximum age limit would be a retirement age of 65 years.
– There are some documents that are required if you go to the bank and apply for the loan. An application form, for starters, your salary statements, your bank transaction statements, all the original title deeds to the house and the property, an address proof (passport), etc.