Did you know that the average home renovation cost is around $51,772?
This hefty expense can make the idea of fixing up your house feel out of reach for many people. However, a personal loan could enable you to make the desired repairs and upgrades without substantially dipping into your savings or changing your lifestyle.
Service Loan South can assist you with a personal loan for home renovation, allowing you to achieve your dream home on a budget.
Why Choose a Personal Loan for Home Renovation?
A homeowner may choose a personal loan for home improvements because it doesn’t require collateral like a home equity loan or line of credit. There is less risk involved when you don’t have to put up collateral and potentially lose your home due to missed payments.
Personal loans for home improvements offer fast funding and flexibility in the way you use them. With our home improvement loans, you can use the money for whatever your home needs, such as a kitchen or bathroom remodel, upgraded doors, a new HVAC system, or a patio extension.
Other benefits of personal home improvement loans are their fixed interest rates and payments that don’t change during the course of your loan. You’ll also enjoy a straightforward application process so that you or your contractors can get to work as quickly as possible.
When you use a personal loan for home repairs or renovations, you can increase your property value and boost your home’s resale value. Remember that home updates can be used to improve the energy efficiency of your home so that you save money on monthly utility bills.
Meanwhile, you’ll enhance the style, functionality, and comfort of your living spaces while addressing safety concerns and gaining peace of mind. If your household’s needs have changed, you can use a home renovation personal loan to make modifications for a new family member or to make accessibility modifications.
What Can You Fund with a Personal Loan for Home Renovation?
Because of their great flexibility, you can apply a personal loan for home renovation to essentially any household project.
Here are some sample projects that you could finance, at least in part, with a personal loan:
- Remodel a kitchen
- Remodel a bathroom
- Add a deck or patio
- Get a new front door
- Install new windows
- Replace your garage door
- Upgrade your roof
- Install new flooring
- Add crown molding to a room
- Paint a room’s walls
- Do landscaping projects
- Update large appliances
However, a personal loan might not be the best fit if your home renovation project has an uncertain cost or unpredictable timeline. Many people prefer personal loans as a home renovation funding source for essential repairs and one-time projects with a predictable completion date.
Due to the flexible nature of personal loans, if you have money left over from your loan after your renovation project is complete, you can use it for something else. Our customers commonly use our loans for everything from school costs to holiday expenses, automobile repairs, vacations, debt consolidation, and other purposes.
Considerations Before Applying for a Personal Loan
Before taking out a personal loan for home renovations, there are many important things to think about. Here are some considerations to keep in mind before you apply for a loan and commit to a new project.
1. Assess Your Renovation Budget
It is crucial to have a clear understanding of your total project cost so that unexpected expenses don't catch you off-guard. Knowing your budget will also help you request an appropriate loan amount and afford the monthly payments.
2. Check Your Credit Score
Your credit score impacts your ability to be approved for a loan and your interest rate. It is a wise idea to check your credit score before applying for a loan so you know what to expect. Also, check your credit report for accuracy and dispute any errors so they don’t impact your loan approval or terms.
3. Calculate the Affordability
Another consideration in getting a personal loan for home improvement is determining how much you can comfortably afford in a monthly loan payment. You may have to readjust your monthly budget to accommodate a new loan payment. However, certain sacrifices could be worth it to improve the livability and value of your house.
4. Compare Loan Terms and Interest Rates
You don't necessarily have to settle for the first loan you are offered, as many lending options are available. Compare interest rates, and look for the lowest one you can find. Small rate differences add up over the lifespan of your loan.
You can compare the rates of different kinds of lenders, including online lenders like Service Loan South, traditional banks, and credit unions. Some lenders offer the opportunity to pre-qualify for a loan so that you can know potential terms and rates to understand your loan options without harming your credit.
5. Understand the Fees
Home improvement loans may also come with various fees, which you should learn about so that you aren't surprised when payments are due. Depending on the loan you choose, you could be obligated to pay origination fees, prepayment penalties, or closing costs. All these fees are on top of the loan on which you make monthly payments.
6. Understand Loan Amount and Term Length
Loan terms encompass the length of your personal loan for home remodel and your monthly payment amount. Terms vary from one lender to the next and are based on the amount you are awarded. You might also consider looking for a lender that has flexible terms so that you could perhaps make early payments without incurring additional fees and pay off your loan earlier.
Alternatives to Personal Loans for Home Improvement
The best home improvement financing option depends on how much money you have saved, are willing to spend, and are able to allocate to household projects. It also depends on the type of project you're pursuing, current labor and materials costs, and how quickly you need the work done.
In addition to a personal loan for home renovation, you might also consider a home equity loan or home equity line of credit. These are secured loans that require you to put up your home as collateral. Home equity loans are generally preferred if you know how much you need to borrow, while a home equity line of credit is ideal if project costs are likely to fluctuate or not be easily estimated.
Another option is to use a credit card to pay for home renovations. Credit cards are best for low-cost projects if you can pay off the balance before the due date. However, they can result in high amounts of interest if you can’t pay off your monthly balances and if your credit card charges are very large.
Meanwhile, a cash-out refinance could be an option if you’re willing to use your home’s equity to get a new mortgage that replaces your current one. With this option, you’ll borrow more than you owe on your current mortgage and get the difference in cash to use for renovations.
How to Apply for a Personal Loan with South Service Loans
If you are unsure whether a personal loan for home renovations is right for you, it may help to consult a trusted financial advisor to discuss your situation and home improvement goals. But if you’re ready to apply for a home improvement loan, we're committed to making the process as fast, easy, and positive as possible.
We provide loans up to $1,500, so our personal loans are best for small renovation projects or supplemental support for larger jobs for which you have additional financing. We've been helping homeowners make their house dreams come true since 1974 and have a simple application process customers appreciate.
You can apply online for a loan, provide application information over the phone to our staff, or complete your application in person at a local branch. We have many locations throughout the South and Southeast to serve you.
Even if you have bad credit, it's worth applying for a loan through us. We help people who struggle with their credit every day. When you repay your loan on time and according to the terms, you can even begin the important process of rebuilding your credit so that you're in a better financial position for the future.
If you’ve been thinking of fixing or updating your house, there’s no time like the present to get started.
Apply today for a personal loan for home renovations and feel safer, happier, and more comfortable where you live.
