Many homeowners decide at one time or another to make significant improvements to their homes. Or some people purchase homes that need improvements and take out an additional loan to get that work done along with the purchase.

Whichever applies to you, there are some things you will want to consider when thinking about a home improvement loan. Our loan and construction consultants can talk with you in more detail.

• Improving your home may improve its value as well as your lifestyle
• Your loan generally will be considered a second mortgage
• You will need to make decisions about what improvements will work best    for you

Improving your home may improve its value
as well as your lifestyle

Many undertake home improvements to make positive changes in their environments. A home that looks nicer and is easier to get around makes our lives more pleasant.

There may be additional benefits to improving your home. Most significantly, improvements may increase the value of your home when you sell it. Considering this benefit is particularly important when you are making improvements that have health or safety implications. In the future, having these things "out of the way" can make the process of negotiating with a buyer much easier.

Your loan generally will be considered
a second mortgage

In general home improvement loans are what are considered second mortgage loans. In other words, you use your home as collateral for the loan.

Because it is a mortgage loan, you'll want to consider the same things you would for a first mortgage or home purchase loan.

          1. Get a loan you can afford
          2. Get a competitive interest rate to save money over the long term
          3. Get a loan with terms that make sense for your purchase

You will need to make decisions about
what improvements will work best for you

Many people know exactly what improvements they want to their home and get a loan that meets those needs perfectly. When you begin thinking about what improvements you'd like to make to your home, you may find the list growing long. This is a natural part of the process. You may find though after exploring the possibility of a home improvement loan that not all of the improvements make sense given how much you want to borrow.

Remember your home is a long-term investment, and you'll have plenty of time to get things done. So you may want to consider which improvements really need to be done right away and which can wait. These can be hard decisions to make. At The Home Ownership Center we have a team of construction consultants who are available to discuss your projects with you.

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