Renovating your home is ideal when you’re looking to increase its resale value and your quality of life. However, renovation expenses can accumulate, especially when you’re tackling multiple projects. Having readily available funds to cover these expenses helps, but sometimes, this just isn’t possible.
Fortunately, a home improvement loan can provide the extra funding you need to remodel your space, whether it’s a kitchen refresh or roof repair. But these loans fall under a standard application process you’ll want to be aware of. Here’s what to expect when applying for a home improvement loan.
You Can Apply Online
Applying for a loan used to entail scheduling appointments with a banker during their business hours. Trying to book a meeting with a busy banker can be challenging. However, with the advance of technology, this is no longer an inconvenience. Now, you can conveniently fill out applications online during evening and weekend hours or speak with an expert over the phone.
There May Be a Hard Inquiry on Your Credit
As with most loans, home improvement loans may subject your credit to a hard pull to determine how much risk you would pose to the lender. This can affect your credit score in the future, but a hard pulls may be necessary—this look into your credit history, repayment log, and other factors may ultimately qualify you for funding.
You’ll Need To Provide Proof of Income
Your take-home income may affect your ability to pay off the home improvement loan, so you may need to supply proof of income when applying for the loan. Proof of income entails pay stubs, W-2 forms, or a letter from your employer indicating a salary. If you’re self-employed, you’ll want to include tax returns from the last couple of years and bank statements to prove your income.
You May Have To Provide Information on Debt
Proof of income is necessary for experts to calculate your repayment ability, but it’s only part of the information you’ll need to provide. Along with basic personal data, you may also need to provide information on any monthly debt obligations in order for the lender to calculate a debt-to-income ratio.
Lenders May Provide a Same-Day Decision
Depending on who you contact during the application process, it may take days to a week to know whether you qualify for the loan. This may put your home improvement projects on pause, causing an inconvenience. Fortunately, our turnaround time for home improvement loans is swift at Superior Financial! You can skip the wait and receive a same-day decision when you work with us.
It’s essential to know what to expect when applying for a home improvement loan, and at Superior Financial Services, we can assist you, whether it’s to help you apply for a loan or simply give you more information. We also offer free consultations with experienced professionals in the business to ensure you’re on the right track.