Loan to renovate – Compare several offers
Those who need a loan to renovate have various options. For example, he could apply for a normal installment or consumer loan. Such a loan is always freely available and could not only be used to finance larger consumer goods or to replace older loans, but also for renovation.
You can also apply for a building society loan or take out a promotional loan from Capital Lender. For the latter variant, however, various funding requirements must be met. The house bank or Capital Lendercould provide more information.
Compare loan offers
Similar to many other loans, a renovation loan also means that the borrower should compare several offers before making a decision. This could be even more important with a renovation loan than with many other loans because it is not uncommon for these to be larger loan amounts in the five-digit range. In the case of a building society loan, it is essential to make sure that the building society contract is ready for allocation or whether this will only be the case at a later date.
The most important comparison criterion is the annual percentage rate. If there are only slight differences here, it can often lead to the borrower having to repay several hundred USD more than is the case with another loan.
Application and approval
Even if a loan for renovation can be applied for online, a detailed consultation is recommended beforehand. This conversation would not have to be held at your own house bank, but could also be held at any other bank that offers a suitable loan. However, this procedure is not a must, it is only a recommendation.
Once the loan application has been received by the bank, it will examine it very carefully. She will not only get Credit Bureau information, but also ask about the amount of the monthly income. If there are any doubts here that the customer will be able to properly and punctually pay the monthly loan repayments for the renovation, the bank will reject the loan application or request further security. These can be very diverse and range from a debt-free property to a life insurance policy to a solvent guarantor or a co-applicant.
If everything is OK, the loan is usually paid out within a few days. The start of the repayment, the length of the term and the amount of the monthly loan installments are determined individually. The same applies to the question of whether and to what extent special repayments or early repayments are possible.