How to Apply and Get Approved for Home Improvement Loans with no Equity

How to Apply and Get Approved for Home Improvement Loans with no Equity

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Home improvement loans with no equity are on the rise and if you have been contemplating utilizing the services of a lender, you seriously need to read on.

Did you know that personal loans could teach you more about money management and simplify your cash flow? Furthermore, a personal loan can be used to improve credit and avoid alternative mortgage loans that require a down payment.

In fact, the economy has improved immensely since the economic crisis that swamped America a decade ago. Loan options are expanding, repayment plans are becoming more accommodating to people with no equity, and the application process usually requires nothing more than an Internet connection and some personal details.

Even some of the wealthiest people in the world have turned to financial lending. From multi-millionaire actor Nicolas Cage who borrowed millions to one of the world’s most renowned photographers Annie Leibowitz, who borrowed $25 million in 2005,  everybody needs a helping hand once in awhile.

Don’t go thinking that you won’t be eligible to receive a home improvement loan if you aren’t wealthy, however. Numerous factors will be taken into account when you apply but once accepted, the funds can be transferred instantly into your account and used to renovate your existing home.

What are home improvement loans with no Equity?

Money market instruments, better known as equity, is a form of financing that carries zero fixed interest. It is usually traded for business purposes however, this kind of trading involves high risk. Most people will be sitting on some kind of equity, such as stocks and trades, which arw purchased and sold in the form of shares. When a borrower utilizes their equity as collateral, this will be considered home equity financing.

Rather than using the funds as collateral, home improvement loans with no equity are a worthwhile option. The funds borrowed for home improvement loans with no equity will usually be unsecured and will not dip into your equity. Generally, 125% of the home’s equity can be lended by a loan company. What’s more, both new and seasoned property owners will be considered to apply for personal loan.

Equity Funding Should be a Last Resort

After the Great Recession, a lot of people were in desperate need of cash, making home equity an appealing choice, such as to consolidate high-interest rates and as an emergency source for cash. Why not use equity funding for home improvements, you ask? Well, a home equity line of credit, when used unnecessarily, might leave you without a safety net. Predicting the future is difficult and so, it’s not worth risking a financial rut.

The Application and Approval Process for Personal Loans

Knowing what to expect when you apply for personal loans will ease your mind and make you feel confident about the financial decisions. All applicants will be assessed in the same way, so prepare to divulge information pertaining to the following:

  • Assets
  • Occupation
  • Salary
  • Liabilities
  • Outstanding Debts
  • Residential Status

The above information will basically just give the lending specialist a better idea of your circumstances, before they proceed to request additional documentation. Keep in mind that the list of necessary documentation depends on the lending specialist you work with:

  • Personal Identification (ID)
  • Income Slips
  • Bank Statements (if self-employed)
  • Residency Proof
  • Homeowner Rates Notice/Tenancy Agreement
  • Statements for Credit Cards, Personal Loans and Savings Accounts

Ways a Home Improvement Can Financially Benefit You

A home renovation, when done right, can bag you a brilliant return on investment (ROI). If you decide to put your property on the market in the future, it will sell for much more if it was updated with attic insulation, replaced windows and doors, a renovated roof, kitchen remodeling and everything else associated with a home improvement project. The building’s aesthetic appeal and enhanced structure combine to attract buyers that are seeking out style and longevity.

Installing energy-efficient appliances, fitting solar panels to the roof and using home improvement loans to design sustainable architecture will reduce your energy bill, and save  the universe! Another Improvement could help your finances is by saving you the expense of costly repairs/replacements later down the line. For example, a deteriorating roof caused by leakages will slowly weaken the property’s structure, increasing the risk of hazards and expensive replacements.

Celebrities are Home Improvement Fans

Many celebrities have been known to increase the curb appeal of their homes or in many cases, mansions. Who knows – maybe they used home improvement loans to enhance their dwelling, too! Pharrell Williams has definitely infused his personality into his condo in Miami, while heartthrob Leonardo DiCaprio is shacking up in a 6-bedroom luxury house on Palm Springs estate.

A few stars in particular are obsessed with renovating, so why not take interior design inspiration from Ellen Degeneres’ French-themed home or Justin Timberlake’s modern crib before applying for home improvement loans with no equity? Creating a list of homes that inspire, such as homes with kitchen islands and architectural wonders with spiral staircases, will aid you in setting a budget and calculating the required loan amount.

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