Can I Get A Loan To Remodel My Kitchen or Bathroom?June 14, 2019 5:36 pm
Here’s A Quick Overview For Financing Your
Kitchen Or Bathroom Remodeling Project In Kansas City
One of the first questions many Kansas City homeowners about their project is “Can I get a loan to remodel my kitchen or bathroom?”
The short answer is yes (or almost always yes, anyway). Perfect credit is great, but it is not necessary to secure financing. There are several options for getting a loan to remodel your kitchen or bathroom.
If you don’t like the first option, you can keep moving forward until you find the exact right financing choice for you.
Here are the recommended steps to secure financing for your remodeling project:
STEP #1: Find out the overall price of your remodel.
It’s hard to get a loan until you know how much you want to borrow!
That’s why the first recommended step is to contact an experienced Kansas City remodeler to get a quote.
Nailing down your overall cost will help you zero in on the next step – figuring out how much cash you will put down toward your project.
If you’d like to get step 1 done, go here to request a consultation and quote from Kansas City’s top kitchen and bath remodeler: Contact Us.
STEP #2: Decide how much cash you want to use.
Once you have a firm idea of your overall project cost, next determine how much cash (i.e. – savings) you want to use toward your remodel. Some homeowners will do it all with savings. And some choose to finance all of it.
But probably the most common way to get it done is a combination of both savings and a loan. To do this, simply take your calculated quote, subtract what you are willing to use from your own cash reserves, and then you’ll know exactly how much you want to get for a loan.
Step #3: Do a quick check of your credit report.
Anytime you are about to go for a significant loan, a quick check of your credit report is a good idea. If there are any mistakes on your report, you can get ahead of the game by getting them fixed now.
There are many free services that will send you your credit reports or you can request copies of your report directly from the major credit reporting agencies.
(Also, if you want to know how much your kitchen or bath project will cost, reach out to the biggest and the best of the Kansas City remodelers: Contact Us).
STEP #4: Look at your financing options.
For most homeowners, the best way to get financing is to use the equity they already have in their home. Here are some options for doing that:
Home Equity Line of Credit: Using your home to establish a revolving line of credit can be a very good option. In general, banks will approve a line of credit for 75% of your home’s value, minus any balance on a mortgage. Of course, many different factors will affect specific situations, but this is a good general guideline.
Second Mortgage: Homeowners can often get a second mortgage on their home. This is very similar to the primary mortgage you have on your home. You get a fixed amount of money, and then pay it back at a fixed rate with regular monthly payments.
Refinance Your Home and Take Cash Out: Refinancing can be a way to take some of the equity you’ve built up in your home out and use it in a kitchen or bath remodel. With this option, you refinance your home with a new mortgage, pay off the old mortgage and then take out the amount of cash you want. If you can also get a lower interest rate on your new mortgage, this can be one of the most attractive ways to finance your remodel.
BONUS STEP: Consult with a Kansas City remodeler about financing.
During your consultation with a remodeling company, ask any ideas and tips they have for financing. The key here is to make sure you’re consulting with a proven and experienced company to make sure you are getting solid information. We’re the biggest and best Kansas City remodeler and we’d be happy to talk with you about your project. You can go here to get a free consultation and quote: Contact Us.Tags: financing, kitchen remodel, kitchen remodeling, remodel financing, remodeling financing