If you need some extra funds for an upcoming reno, a home renovation loan might be the answer. Whether your family is expanding or you’re trying to increase the value of your home, some renovations can’t wait. Here’s what you should know before beginning the application process.

Be Specific About Your Home Renovation Loan

It’s important to know where to spend the money in your home. When you are contemplating plans for updating your kitchen or landscaping the backyard, think about which renovations will add the most value to your home. When you have a specific project in mind that will serve to increase your home’s value, mortgage lenders will be more likely to loan the money. Furthermore, being specific in your intention will allow you to determine a number. Knowing the anticipated price of the renovations will help you to plan and will show the lender that you aren’t asking for any superfluous funds.

Know Your Credit Score

When applying for any loan, it’s important to know your credit score. Knowing your credit score ahead of time could save you the embarrassment of a loan being rejected. If you have bad credit, consider taking some actions to improve it. In some cases, private mortgage lenders may be more willing to loan the money than a bank will. Look into companies that offer bad credit loans or easy loan approval or take the necessary steps to recover your credit and wait to apply until you’ve seen some improvement. It’s also a good idea to look for any mistakes or incongruencies with your credit report.

More Helpful Home Renovation Loan Tips

In addition to being specific in your planning and knowing your credit score, there are a few other things to consider as in regards to a home renovation loan. Most loan lenders will want to know how much equity you have in your home and it’s a good thing for you to know as well. Determine the need of a co-signer. Borrowing with bad or no credit is easier when you have someone to co-sign.  

 

Whether it’s your dream kitchen, finishing the basement, or putting in new floors, a renovation or construction loan can get you started on your next home improvement project.

 

Whether you’re looking to borrow or invest, Alta West Capital can help. We offer a number of lending solutions for first time buyers, individuals and families that are new to Canada, self-employed business owners, real estate investors and more. Alta West loans are fast and flexible to fit your needs. Visit our website to apply online or contact us directly. Call (403) 254-9075 or email info@awcapital.ca.