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What do you need to know about mortgage loans?

Personal loans, home equity loans: AdvanceSOS financial advisors share all about home improvement loans in this comprehensive guide.

Home renovations are a big deal: whether you’re making massive changes or just modifying your home a little, you’re sure to spend a lot of money on it. Although this may seem stressful, many tools will help you to go through this process without any worries. One of them is home loans, which allow you to get the amount of money you need for your renovations and repay the loan when you are ready.

It’s a fast, safe and very useful help for the work you do at home. Still, before you apply for a home loan, you should know a little more about the whole process. That’s why we’re here! at AdvanceSOS We put all our expertise in the financial sector at your disposal to help you make the perfect choice for your situation.

In this article, we cover the main aspects of home improvement loans in USA. Thanks to the advice of Nick Wilson, veteran loan officer and AdvanceSOS Founder and CEO, we not only offer the basics on home improvement loans, but also the best tips and advice on the subject.

What are home loans?

Nothing complicated, really. Home improvement loans are simply loans available to borrowers who want to repair, remodel, modernize, or improve their homes. The amount of this type of loan depends on various factors, most notably the state in which you live links like this to confirm the maximum amount you can borrow. Other crucial factors depend on the lender you need to enter into a digital agreement with (more on that in the section below). The latter also determines the payback period available to you, usually a few years, since it involves lengthy processes such as e.g. B. Renovation work.

How to apply for a home improvement loan with AdvanceSOS

At AdvanceSOS, we offer a very simple and straightforward process to match your needs with the prospective lender who best meets them. You simply apply for a loan and we will connect you with the best lender in our financial network who will accept your proposal. If you need between $100 and $5,000, we’re here to help, even if you have low credit! These are the key steps to applying for a totally free home improvement loan.

  1. Visit our website at The first thing you will notice is a screen where you can start by specifying the amount of money you need. Then click on “Get Started”.
  2. Now the actual application process begins. Simply fill out a form providing all the details and information you want. This way we fully understand your needs and are able to identify your needs. That shouldn’t take long.
  3. Once you’ve completed the application process and received your loan proposal, it’s our turn. If the application is approved, our credit advisors will work with our financial system to match your requirements with the perfect lender most likely to accept you and complete the process with you.
  4. At the end all that is missing is your signature. You and the lender sign a digital agreement to legally establish the terms of the loan. You will eventually receive the amount of money stipulated in the agreement within up to 1 business day when it is completed.

Types of home improvement loans

We have just described the general process for applying for a home loan. This works for any type of loan you choose, so it might be useful for you to understand what these types are and how they differ from each other. Here are the two most important.

  • Personal Loans. The most common types of loans are mainly used for debt consolidation and of course home renovations. Personal loans are unsecured, meaning there is no tie to collateral. For those unfamiliar with the term, a debt not attached to collateral means that in no event does failure to repay the loan justify your home or other collateral being taken by creditors.

Personal loans are easy to get, but are granted as a one-off payment. In contrast to several smaller payments or installments, in these cases you will receive a one-off payment.

  • home loan. This can be seen as a form of the safer loan from the lender’s perspective. Unlike a personal loan, a home equity loan is secured because it uses the equity in your home as collateral for the loan. Therefore, if you fail to repay the loan, the lender can legally take away your home. According to that Federal Trade Commissionyou can borrow up to 85% of your home equity.

While home equity loans as personal loans have disadvantages, there are several advantages as well. For example, since this type of loan is safer for the lenders, it is generally cheaper for the borrowers as the interest rates may be lower.

advice and tips

  • If you need a home improvement loan for a major renovation or project, estimate the total cost before applying so you can choose the best option for you and avoid running out of money.
  • Consider the nature of your home improvement work. If you need money over time, a personal loan may not be best for you. In these cases, try the Home Equity Line of Credit (HELOC). If you intend to pay off everything at once, opt for personal or home equity loans.
  • Applying for a home equity loan or HELOC will help you understand how equity works and how much equity you have. This way you can know how to use equity for your home.
  • If your credit score is low, don’t worry: at AdvanceSOS we may still accept your loan proposal. However, personal loans that are unsecured are usually harder to get when the credit history is poor.
  • There are other alternatives to home loans. Contact us and we’ll be happy to help you decide whether your financial situation and needs are best met by home loans or 0% APR credit cards, payout mortgage refinance, and the like.

Amanda Girard is AdvanceSOS’ lead financial copywriter. She has helped the company grow and expand its reach to customers over the past three years. A Masters in Finance holder and a seasoned copywriter for over five years, Amanda writes the most informative articles and is currently a contributor to Realty Biz News

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