Capturing a Home Improvement Loan After Mortgage

When purchasing a home that may need some TLC it is not uncommon to get a mortgage that covers both the initial amount of the home minus your deposit and the amount necessary to complete the repairs or modifications. However if you purchased your home and desire to make home improvements after your initial mortgage, it is still possible to capture a home improvement loan.

There are steps you will need to take.

  1. Determine the cost of your remodel.
  2. Gather together the necessary documentation, including proof of income, and tax forms for previous years.
  3. Run a credit report.
  4. Shop for the best possible interest rate with a reputable loan company.
  5. Apply for a home improvement loan with a reputable mortgage company.
  6. Read all the small print of the home improvement loan before signing.
  7. Make sure you are capable of making the specified home improvement loan payments. This home improvement loan is a second mortgage and if you default you could lose your home.
Many mortgage companies now offer no equity home improvement loans, meaning you do not have to wait until you have equity built up in your home to borrow from your mortgage company for a home improvement loan.