| Things To Consider Before Financing
Your Home Improvement Project
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A) Financing plays a big part in the home improvement industry because most people cannot afford to pay cash to improve their homes. Most home improvement companies offer some type of financing, but just like everything else, you should shop-around and call your own bank to get information on home improvement loans.
B) There are some unique advantages with home improvement loans as opposed to other types of loans, because the interest paid on a home improvement loan may be tax-deductible for some. Be sure to ask your accountant or tax adviser if you quality.
C) If you have chosen financing provided by a home improvement company, and problems arise with the job several months later, you should consider calling the bank and letting them know that you will not make payments until the problem is resolved. This step should only be taken if your general contractor has failed to follow the terms and conditions of your contract.
D) Remember, most banks secure their loans with a mortgage or lien on the property. Shop for the best interest rate and make sure there are no prepayment penalties for early payoff.
E) Should you elect to use financing from a home improvement company, all paperwork should be completed in your home at the time of sale. Note: some states will not allow roofing; siding and window company's to sell bank financing in 'the home'. If that is the case, you may have to go into the bank personally or the banker may come to you to complete the paperwork. Check with your states banking authority.
A WORD OF CAUTION - There is, however, one document you should never sign until the work is completed and you are totally satisfied. This would the "completion certificate." Once this document is signed it allows the company doing the work to be paid.
To obtain competitive financing for your home improvement project click on the tab at the top of this page and fill out a credit application
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