With the arrival of good weather, there are many people who consider renewing the image of their home. Buying new furniture or renovating the kitchen or bathroom are usually the main objectives.
Thus, doing work at home is the third most repeated purpose when applying for a loan. It has been argued by 13.10% of the people who have managed their financing through CredWise during the first quarter of 2017.
Ahead, they are only buying a car (20.00%) and reunifying debts (19.27%). The amounts, diverse, although the vast majority range between 10,000 and 30,000 dollars, according to the date of the loan comparator.
To undertake a rehabilitation or reform can be very expensive and, in many cases, you have to resort to a financing product. A few years ago it was very common to request an extension of the mortgage, a method that today is less frequent. Thus, the remaining option is to request a personal loan or an exclusive one for works.
Characteristics of loans for reforms
Many entities offer their usual consumer loans to finance some works although some maintain in their portfolio ex professed products. Taking into account that the final characteristics will depend on the profile of the applicant, in general terms the interest rates usually move around 6.00%, although there are those that start at 4.00%.
The minimum financing usually starts at 3,000 dollars and can be extended up to 60,000, and there may be other caps and repayment terms moving between five and 10 years. The commissions depend on the policy of each entity and may or may not exist. If there is, they are added at the opening of the loan and does not exceed 1.00%.
What requirements does the bank request for a loan?
The requirements to formalize a loan for renovations are not different from those of a consumer loan. Thus, the bank will study the credit profile of the applicant. What is your financial situation (your usual payments and if you have other debts) and your credit history (if you have had loans in the past and how you responded before payments).
Among others, you can ask for documents as proof of periodic income, work history, if you have other loans, equity …
Aspects to consider when applying for a loan
The most normal thing is that the bank with which you usually work offers better financing conditions since you know all our movements perfectly. Although, before deciding on a product, it is advisable to analyze the different options offered by the market.
In this sense, some banks improve the conditions of their loans to new clients which, in addition, assume links: they domicile the payroll and the receipts in the entity or contract certain products. Although if you are thinking of making a radical change to your apartment or house, pay attention to these 10 steps to follow for full renovations.