Finding the best home improvement loan requires a little reflection and some research on your part. In addition to a low interest rate, you should look closely at the other terms offered by different lenders. You should get some feedback from friends and acquaintances or other information on how the pieces deal and the results of these loans. What’s more, a loan has to be very well thought out and planned before you sign the contract.
How to plan home remodeling with or without a loan?
Decide exactly what you want to accomplish by adding the details that you are able to conceive. For example, deciding if you would like a new kitchen is insufficient to describe the project. You need to know if you would like solid granite countertops or you are happy with MDF wood. The cost varies with the quality of the material and the complexity of the renovation. Add as much detail as possible to any reforms you want to make.
How to make the retirement budget of your home?
Unless you are doing all the work yourself (usually not recommended), talk to at least three companies or professionals who work with renovations. Write down all the values, ask about optional materials and more. Be as specific as possible to receive the valid cost estimates and they will not be very different from the final cost. It is extremely important that the contract to be negotiated is not for payment of hours worked, but for the full service done.
To remodel your home, a lot of time will be spent, from the beginning of the planning to the execution of the project. (Photo: casa.abril.com.br)
Do not neglect to thoroughly research all potential home improvement service providers. Get references and third-party information to verify your honesty and quality of work. As the prices of products and materials can increase rapidly, it is very important that the group or contracted professional is always available to clarify doubts.
How to finance the renovation of your home?
Use the internet to research banks and financial institutions that have loans and financings for home renovations. It is very important that you have at hand a maximum and minimum value of the total retirement of your home, to make two budgets and be able to put the risk of higher costs in your planning.
Interest rate and loan repayment terms are the most important things of a finance or loan. Carefully evaluate the additional costs as well as the total value of the loan. Recall that a reform has a “useful life” of up to 5 years, which may allow greater flexibility in the plots. CAIXA is the market leader in the best conditions. However, other banks may not even provide a lower interest rate, but they can add home insurance at no extra high cost.
After evaluating different banks, financial institutions and loan programs, select two or three that you liked the most. Then, check online for people who used the services of these institutions. Knowing about headaches and problems they face can make you avoid getting into a problem.
Should I use a personal loan to renovate my home?
The right thing to do is to create a low risk investment fund for a reform every 5 years at least. However, we know that few people do this. This fund should have you earning about 5% of your salary so that you have enough money at the end of 5 years to negotiate better pay conditions for retirement.
When making a budget before taking out a loan, do not skimp on the materials or you may have higher maintenance costs. (Photo: mebermetais.blogspot.com)
Before you make the loan too, you can try to fund directly with who will be hired for the service, which can result in lower interest. It is necessary, however, that you compare the installments of the loan / financing and installment with the service provider to see which is the most taken into account.
If possible, try to divide the reform into steps and make a gradual payment, starting with the most urgent parts, like rooms with structural problems.
Try not to overstretch a loan and limit your repayment to a maximum of 12 months. Limit the amount of the installments to a maximum of 7% of your salary so that the costs are not too high. Try to raise some money before you retire and avoid selling vehicles and / or properties to make the renovation: it hardly adds the equivalent value of the investment made to the final value of the property.