If you have been doing your research about remodeling your home, you might have been trying to decide how you will finance your remodeling project. For example, you could always consider borrowing against the equity in your home, which a lot of people do. However, now that many contractors offer their own financing, it's not a bad idea to consider a contractor loan to remodel your house. These are a few reasons why you may want to talk to your contractor about this option:
1. It Could Be Easier to Get Approved
First of all, if you're a bit concerned about getting approved for a loan to remodel your home, such as if you have bad credit, then you may want to consider working with a local contractor to try to get a contractor loan. The truth is that your contractor probably wants to get the work. If he or she knows that you will be more likely to use his or her services if you are able to get approved for financing, then he or she might work hard to help you get approved. Of course, this doesn't mean that you will automatically get approved, but it can help in a situation in which you might be worried about not getting approved from another lender.
2. You Might Be Offered an Enticing Offer
Many contractors offer enticing offers for those who finance work through them. You might get a discount on the job if you finance through the contractor, for example, or you might be offered a same-as-cash period on your loan. Of course, it pays to shop around and ask about the details of various contractor loans so that you can find the best deal.
3. You Won't Have to Use Your House as Collateral
With many loans, such as home equity lines of credit, you have to use your house as collateral. This can be a bad thing in many cases. For example, if you try to sell the house, you'll have to pay off the loan before you can get any equity. With financing through a contractor, this is generally not the case. Instead, you'll be able to continue to make payments as you would with any other loan. If you're looking to remodel your home before selling or if you just don't like the idea of putting your home at risk by using it as collateral, choosing contractor financing can be a better option.
Contact a company like Alleva Construction, Inc for more information and assistance.Share