To Learn How to get a renovation loan easily

To Learn How to get a renovation loan easily?

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A house is somewhere you spend most of your life. For this reason, It should be as you want your house to be. But when we buy houses, it’s not up to our expectations, And to make custom changes we need to do the renovation.

How to easily get a loan for a renovation?

In this article, We’ll discuss the detailed procedure regarding how to get a renovation loan. Buying a house is very expensive and needs huge funds. When we need to make changes and renovate, the price of the houses can skyrocket. Many people depend on loans for renovations due to this reason. Getting such a loan is not very difficult and can be easily obtained.

What is covered in renovation?

A lot of people have confused about the renovation. They aren’t sure what the loan covers. To clarify, Once you receive the funds for renovation, You can use them to make any changes to your house. If you are looking to increase the space in your living space, It is possible to do so. If You want to tarnish your bathroom and build a marble one, You can do it. You can also create an outdoor space if your house allows it. If your loan is big enough, you can also increase the floors in your house.

Types of renovation loans 

Before we jump into renovation loans, Let’s understand different ways to obtain them. If you have a home loan to your name, You don’t have to get into any paperwork. Call your bank to request that your loan be increased for the number of renovations you have in mind. The best part about this is, The top-up loan would be for the same interest rate as your house. If you don’t have a home loan, you have to apply for a loan with documents and pay a higher interest rate than top-up loans.

LOAN ELIGIBILITY 

If you want to avail of a loan for renovation, You have to meet certain criteria. These include your age, Which should be between 21 to 65. (Remember there is an exception to this rule). In case you are an employed person, Your income should exceed more than ₹ 20,000 per month. Share your ITR filings from the past three years if you’re a businessman, self-employed, or a trader. To speed up your loan progression, you will also need a high Cibil score. Other Miscellaneous Charges will be assessed depending on which bank you are using.

DOCUMENTS REQUIREMENTS 

When you apply for any loan, The most important aspect documents. Usually, For renovation loans, you don’t need a whole lot of paperwork. The first document you might need is a photo id card; These may include a pan card, Adhaar card, voter id. Apart from this, You also have to provide bank statements of your account for a minimum of 3 months to 6 months. Banks also might ask you to provide a salary slip for the last three months, Including your Employment Certificate. Along with these documents, you will need to give the bank proof of your address.

INTEREST RATES  

As I have mentioned earlier, If you already have a loan, you may not have to pay anything and get the same interest rate. But in another case, if you are applying for renovation loans, You can expect to pay an average interest of 10.99%. Remember, if your credit history is good and your documents are strong, You can expect to pay a lower amount. Apart from the interest rate, You have to pay a Processing Fee, Which is a one-time payment for your loan process. Apart from this, You also have to pay other Miscellaneous Charges depending on your bank. And in case you want to close your loan account, you can also expect to pay a foreclosure amount.

APPLYING FOR LOAN

Once you have considered and accumulated all documents, You can apply for a renovation loan. In the present, you don’t need to go to the bank. Through the website of the bank, you can apply for a loan. You have to fill in basic details to sign up and upload all your documents. Your loan will be sanctioned online only. You may still have to give physical documents to the bank, But a bank executive will do that independently when they visit your home.

See Also…

How To Flip A House For Beginners In 2021?(Opens in a new browser tab)

How To Calculate Mortgage Points In USA 2021?(Opens in a new browser tab)

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