3 Things To Consider While Taking Out Home Improvement Loans

You have been living in your home for the past 10 years; the paint is starting to crack and peel, the hinges are loose, faucets are leaking, lighting is out of the ark, the interior is almost dull and old-fashioned. Now is the time to refurbish your home.

You must consider the balance of your savings account that may hold you back from taking a step forward. Well, do not worry if you do not have enough money to dip into. You can take out home improvement loans in Ireland.

Getting a loan at a lower interest rate is possible only when you have a good credit history. You will get the loan at a higher interest rate if your payment history is disappointing. The disbursal amount varies from lender to lender.

Here are the three things that you must consider while taking out home improvement loans:

Easy availability does not mean easy repayment. It involves interest on the top of the capital. Make sure that you will pay back your debt on time.

Pan ahead

Look at every corner of your house to determine, which part needs refurbishment. You must have a clear idea of how long it will take to complete. Contact your contractor and get the quote. You should contact multiple contractors to get the best deal. Getting an affordable deal is paramount but it does not mean that your contractor compromises with quality.

Consider the total cost

Before you take out a loan, you must know the total cost of home remodeling. Jot down all expenses and add up to know the total cost. Make sure neither of them has slipped your mind. Dip into your savings as well. This will help you avoid the additional burden of interest. However, do not forget to have an emergency cushion in case unexpected expenses arise.

For instance, if you have €5,000 and the total estimated cost is €25,000. You will not consume all of your savings in repair. Try to set aside half of the money for unforeseen expenses and take out a loan worth €22,500.

Your repayment

Now, you have known the amount of money, which you need to borrow. The next step is to use the loan calculator to figure out the total cost of your loan. Fill out the details and get the estimated total cost. You must note that the calculator is shown an estimated cost. It may vary when you seal the deal.

Chances are it does not fit your budget. In this case, you have two options: to put off renovation or to contact your lender and explain your situation to them to get a personalized loan offer. With a stellar credit score, it is easier to get bespoke deals.

Here is the credit rating:

Excellent	720 - 850
Very Good	690 - 719
Fair	630 - 689
Bad	580 - 629
Poor	<580

Alternatives to home improvement loans

Your Lender may turn down your loan application if your credit score is extremely poor. If due to any reason you are unable to apply for a home improvement loan, you should consider the following alternatives:

Personal Loans

Home Equity Loans

Credit Cards

Online lenders easily approve applications for home renovation. However, you should be careful with your repayment capacity. If you miss any repayment, you will end up paying late payment fees. This will not only burn a big hole in your pocket but also pull your credit score.