Home Improvement Loans and Financing - Update From General Contractor Licence Guide

Home improvement loans are actually home loans used to finance improvements to houses or sites, with the goal being to increase or at least maintain the value of a house. Such improvements can consist of repairs, additions, and enhancements.

So, precisely what happens if you have a client that is truly eager to remodel their residence, but does not possess the money or credit cards to fund the job? In general, the best home improvement loans can be obtained according to the amount of your client’s equity in their residence.

  Equity represents the fraction of the house owned, which is truly not owned by a lender. Getting a large amount of equity would more likely result in better interest rates and loan terms. And yet, home equity loans happen to be not as readily available as they used to be given falling home values, as well as required fees and inspections similar to obtaining a whole new mortgage that make them an undesirable and not terribly cost effective form of financing for home owners.

The fact that home equity loans happen to be more difficult for clients to get has a direct impact on your bottom line. As a contractor, you will find it helpful to become familiar with the various forms of home improvement financing available to your clients. You will have an advantage with clients if you can potentially give them financing options and information.

 You could also find companies that will finance projets carried out by licensed contractors, in a sense, becoming your in-house source of financing. A complete understanding of renovation and home improvement financing will increase your business revenue.

Read the concluding part of this article here:
Home Improvement Financing