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
