What Do You Need To Know About Home Improvement Loans?

What Do You Need To Know About Home Improvement Loans?Do you want to make some improvements to your house? Home improvements are a great way to make your home more functional, and can also add value to your home. At the same time, performing a home improvement project can be expensive, and that is where a home improvement loan can be helpful. What do you need to know about them?

The Eligibility Requirements

First, just like applying for a mortgage, there are eligibility criteria that you need to meet. The criteria can vary from lender to lender, so you need to talk to your lender to figure out what their requirements are. Some of the requirements include your income, assets, age, credit score, and equity in your home. Keep in mind that whether you are salaried or self-employed can also impact whether you can qualify for a home improvement loan.

The Loan Amount

You should also think about the total amount of money you have to borrow. Usually, you are given a maximum amount of money you are allowed to borrow based on many of the factors listed above. In general, your loan amount cannot exceed a specific loan-to-value (LTV) ratio based on the equity in your home. If you have a specific amount of money you have to borrow to complete your home improvement project, you should talk about this with the lender.

The Interest Rate

It is not unusual for the interest rate on a home improvement loan to be slightly higher than a typical mortgage. On the other hand, there are options where you can collateralize the home improvement loan to get a better interest rate. You may want to talk with the lender about your options to make sure you get as low of an interest rate as possible. It could save you thousands of dollars over the life of the loan.

Talk About Your Options With A Lender

In the end, these are just a few of the most important points you need to keep in mind if you are interested in taking out a home improvement loan. There are plenty of options available, so be sure to review the benefits and drawbacks of each option with your lender.

6 Top Trending Green Features To Consider When Remodeling

6 Top Trending Green FeaturesSustainable materials, energy savings and smart home technology are high on the list of buyer wants in a home. But there are some other architectural and design trends that will change the way Americans live this year and beyond.

When planning a remodel, it pays to pay attention to green features, as well as to improved floor plans that will make a home more comfortable, more appealing and more functional. 

Here’s a list of what’s hot right now:

Natural and Sustainable Materials

Eco-consciousness and concerns about individual health and wellness prompted a return to natural woods and stone, as well as organic forms and living greenery. All are prominently featured in today’s show houses and and on design shows. For both residential and commercial design, there is renewed emphasis on the importance of natural light, views, air quality and open space as elements that affect not only mood and function but also health and well being.

Reclaimed and Recycled Products

No matter what the design or decor, there is a way to incorporate previously used materials. Recycled plastic is commonly used for roofing tiles, carpet, insulation, composite lumber and decking material, decorative trim and landscaping rocks. Reclaimed beams, distressed wood flooring, stunning countertops fabricated from recycled glass, wood chips and even cardboard, are only a few trendy possibilities. For a planned remodel, be sure to investigate what’s available, including “repurposing” used building materials like old windows, vintage gates or antique furniture.

LEED Certified Construction

Resource conservation and energy-savings are a way of life and worthy of attention. In some ways, Europe and Asia lead the U.S. in terms of conservation, but one way to assure that new homes are built to a certain standard is to insist on LEED certification, which stands for Leadership in Energy and Environmental Design. It’s a compliance and rating system for both residential and commercial construction that is recognized internationally.

Energy-Star Rated Appliances, Systems, Fixtures and Fittings

It would be difficult today to buy a new appliance or furnace that is not energy-efficient. But in an older home, even if existing appliances, faucets and fixtures, heating and cooling systems are still operational, it might be wise to consider replacing them. Sometimes the savings on monthly water and electricity alone makes financial sense. And new replacements always add to a home’s appraised value.

Rooftop Solar Panels

There is ample evidence that buyers will pay a premium for solar homes. Although the initial investment is relatively high, an owner will benefit from an immediate reduction in energy cost, and the added property value might make such an investment worthwhile.  

Smart Home Technology and Home Automation

Buyers today almost universally want a wireless security system and some form of programmable temperature control. Additional smart home features high on the list of consumer wants include lighting controls, wireless hubs that integrate entertainment and convenience features, and trendy apps that allow control of home functions via smart phone, whether from across the block or across the globe. 

Owners who are motivated to sell will look to these buyer wants in order to be competitive in today’s hot real estate market.