A personal loan can be an effective option to finance home renovations
The costs of renovations can add up quickly, whether you’re modernizing your kitchen, redoing your bathroom, or upgrading your yard. To help finance your projects, a home improvement loan might be an option.
Home improvement loans are a type of personal loan you can receive from a bank, credit union, or online lender to pay for home upgrades. After figuring out your renovation budget and how big of a loan you will need, the process of applying for a home improvement loan can be broken into three steps:
Many lenders allow people to fill out a prequalification form with no impact to their credit score. This form will ask you to provide information like name, date of birth, purpose of loan, and desired amount. It’s important to know that your credit score may influence the loan offers you get. Once the form’s completed, lenders will notify individuals of available loan offers, including their loan amount, interest rate, repayment terms, and origination fee, if applicable. Compare offers for the best deal.
Officially applying for a home improvement loan will trigger a hard credit check, which may cause your credit score to drop a few points. Borrowers will need to submit documents to verify proof of identity, income, and address as part of their application.
When your loan has been approved, it’s time to look over the offer and officially accept it. After a borrower has accepted a loan offer, lenders typically transfer funds directly into your account as quickly as a day or two.
Your loan’s repayment terms will detail how much monthly payments are and when the loan needs to be paid back in full. Some good news? Making on-time payments can help improve your credit score.
See what the possibilities are with no obligation or impact to your credit score. Check your loan options now.