Home Improvement Loan or Personal Loan

Personal Loan or Home Improvement Loan? That is the question.

We love decorating our houses.

And there are phases in our lives when maybe we’ve spent too much time watching Food Food or TLC and thus have built castles in the air of visions of turning our kitchen into a chef’s paradise. Or perhaps our master bath is just one shower away from a disaster. For we really do love Italian tiles on our bathrooms.

And if so, then cheers, you’re not alone. Recently, the Joint Center of Housing Studies for Harvard University has investigated and reported that the home improvement industry should continue post record-level spending in 2016. For many people, this means borrowing money to pay for the well planned home improvements and home decorating schemes.

Now, one is ought to face a tough and difficult and perhaps hypothetical question.

So, which home improvement loan is right for you?

Many homeowners and homemakers look to tap the equity in their homes. But home equity loans or home equity lines of credit may not be possible or very practical for some borrowers. In that case, one should consider using a personal loan.

While it is known that one can use a personal loan for a variety of reasons, there are a few reasons why a personal loan can have advantages over home equity loans when it comes to a renovation loan, to be specific.

The application process for a personal loan is usually quite simple and quite straightforward. Your own financial situation-for example, your credit history and earning power; this is often the main deciding factor for whether or not you will be able to get a loan, for how much, and if so, at what interest rate. Some personal loans even boast of having no origination fees.

However, home equity loans or home improvement loans on the other hand, are akin to applying for a mortgage (in fact, home equity loans are sometimes called second mortgages). How much you can borrow depends on several factors, including the value of your home. Because you can only borrow against the equity you already have (i.e. the difference between your home’s value and your mortgage), you may have to arrange – and pay for – a home appraisal.

Let’s now see this case in the case of a home improvement loan. With a home equity loan or a home improvement loan, you can only borrow against the equity you have – which, as a new homeowner, is probably not much. You maybe have not had enough time to chip away at your mortgage and the market has not yet elevated your home’s price. A personal loan lets you start home improvements regardless of how much equity you have. So, that is one benefit of availing a Home Improvement Loan.

With a home equity loan, you use your home as collateral, which means an inability to repay could result in your home going into foreclosure. While failing to pay your personal loan carries its own risks (like ruining your credit and credit score), it is not tied directly to the roof over your head,like a gun on your head. Therefore, it is better and safer to avail of a personal loan.

So, if we were to decide, which one is better and safer and more suitable?

Personal loans may not be right for every borrower looking for a home improvement loan. For example, if you have significant equity in your home and are looking to borrow a large amount, you might be able to save money with lower interest rates on a home equity loan. Also, interest payments on home equity loans and lines of credit can be tax deductible under certain circumstances; but that is clearly not the case with personal loans.

On the other hand, personal loans can make sense for these types of customers:-

• Recent home purchasers.

• Smaller home improvement loans (e.g., bathroom or kitchen as opposed to full remodel)

• Borrowers in lower home value markets (if your home value has barely budged since you moved in, you may not have much equity to draw on for a home equity loan).

• For those who value ease and speed.

• Borrowers with great credit and cash flow.

While home equity loans and lines of credit are a good source of home improvement money if you have already built up equity in your home, a personal loan may be a better alternative if you are, say, a new homeowner and need to take care of a few updates to make your new home, just right and perfect.

Questions to Ask When Hiring a Home Inspector

Congratulations, you’ve found the perfect home to buy! Right about now, you are probably on information overload, and looking for resources to get everything ready. One of the most important steps you need to take after getting that ratified contract is to get the home inspected. Like most subjects on the internet, there is a ton of information about home inspections, and how to hire them. One source that is very underrepresented though is probably the best one out there: the home inspectors themselves. No, I’m not just talking about reading their websites, since anyone can put up whatever they want. Instead, we went to a group of highly respected home inspectors and posed this question: If you were hiring a home inspector to inspect a home for your out-of-state family member, what questions would you ask them?

1. What are your certifications?

If you are in one of the many states where home inspectors are licensed, that is just a minimum level to be able to do the job. As a group, we will look for a home inspector that has taken the time to get extra certifications above and beyond the minimum. There are multiple home inspection organizations (both national and local) that offer certifications for inspectors. The two major organizations are the International Association of Certified Home Inspectors (InterNACHI), and the American Society of Home Inspectors (ASHI). Both offer multiple levels of certifications based on both experience and continuing education. InterNACHI has the Certified Professional Inspector and Certified Master Inspector certifications. ASHI has the ASHI Associate, Inspector, and Certified Inspector certifications.

In states where there isn’t a licensing program for home inspectors, it is even more important to make sure the inspector has a certification, since essentially anyone can call themselves a home inspector! In these cases, it can be tempting to hire someone like a general contractor to just walk through the house with you. But, as Andrew Jolley with JODA Home Inspections in Stansbury Park, Utah said “unlike contractors, home inspectors have a system they follow so that all systems are evaluated and nothing is left out of the inspection.” Additionally, a certified home inspector has received training on all of the systems in a house, as well how to inspect them and look at the whole house as a system.

2. What kind of report do you provide and when will I receive it?

Hopefully any legitimate inspector will be providing you with a written report that you can use in your evaluation of the home purchase. That being said, reports differ in both style and level of detail. An inspection report should include digital pictures of defects as well as narrative statements about the systems and defects found. Some reports will also include things like video, glossaries, and summaries. If there is a summary, make sure you still read the entire report!

The turnaround time for a report should also be determined. As inspectors, we understand the tight timelines your real estate agent has put you under, so we will always get you the report as quick as possible. Remember that sometimes a little extra research is required, so don’t expect to get the report at the end of the inspection. Most inspectors should have the report to you within 24 hours of the end of the inspection.

3. Walk me through your typical inspection, what are the most important things?

Norm Tyler of Sage Inspections in St. Louis, MO says: “I’d ask this for a couple reasons. It would help me decide if his approach would be similar to mine. Every inspector is a little different, some will detail 500 little issues, while I’m more of a ‘disregard petty cosmetic stuff so I can focus on finding $1000 problems’ kind of guy. More importantly, if the inspector takes the time to walk me through his approach now, while I’m just a prospect – he’ll probably take all the time needed to take care of me as a customer.”

4. Are you available after you send the report for questions and/or clarification?

This was one of the most popular questions I received from the inspectors I talked to. We all strive to write a report that explains all of the issues as clearly as possible, but sometimes things may not make sense to you. Being able to call or email your inspector with questions after the inspection is critical, especially if you can’t make it to the inspection.

Along with this, you should probably ask the inspector about their policy for follow-up inspections. Once you have negotiated repairs with the seller, make sure you get those repairs re-inspected. I have done a lot of re-inspections, and I have yet to find that all of the repairs were done. Sometimes I am given receipts for repairs that were clearly not even attempted. You should expect to pay for this re-inspection, so find out what it will cost ahead of time so there aren’t any surprises.

5. What is your home inspection experience?

You will find that home inspectors come from many different backgrounds. Some may have been in the building trades, and some may be doing it as a second career. The important thing to look for is an inspector that has experience doing home inspections. David Sharman of County Home Inspection in Peterborough, Ontario mentioned to ask them how many inspections they’ve done in the last 12 months. This number could vary based on the market, but it should be a reasonable number. Look for someone doing at least a few inspections a week, but be wary of those that have really high numbers (unless they have multiple inspectors at their company). This can be a sign of someone that is just doing the minimum to get on to the next inspection of several that day.

6. How many inspections do you do in a day?

Hopefully the answer is only one or two. Most inspectors will do a morning and an afternoon inspection. Some will add in an evening inspection. If it gets over three, start to worry about how long they are spending on your inspection. Most inspections will take 2-3 hours for an average size house. Smaller houses don’t really cut down on the time, but larger houses can significantly increase the amount of time it takes to inspect.

7. What extra services can you provide?

Michael Conrad II, at Diligent, LLC in Nashville, TN points out that you should check with the inspector to see if they offer any other inspection services, such as Thermal Imaging, Termite, Radon, and Mold inspections. This can help you in many ways, since not only do you get all of the inspections you need from one company, it allows your inspector to look at the whole house as a system and provide the best assessment of the house. Some areas require separate licenses for these extra inspections, so make sure they have those licenses as well if required. If licensing isn’t required, make sure they have a third-party certification.

8. Can I accompany you on the inspection?

The inspection is your time to learn about the house. Odds are, the inspection is the longest amount of time you will spend in the house until you own it, so make the most of it. Your inspector should encourage you to ask questions as the inspection is going on. After all, it’s a lot easier to explain (and understand) an issue with it right in front of you. If you wait until a day or two later, now the inspector has to explain it over the phone, and they’ve inspected more houses since then. Charles Buell, of Charles Buell Inspections, Inc in Shoreline, WA, says that he wants the client there the whole time. This is their time to learn about the house. Additionally, Jim Holl with 5 Star Home Inspections LLC in Hillsborough, NC says: A professional home inspector wants you, the future occupant, to attend the inspection so you can ask questions and see most of what the inspector sees. Since you are going to live there and get to maintain it, for safety, health and financial reasons, this is your opportunity learn all about your new castle. If the inspector doesn’t want you to observe, move on to the next inspector you want to interview.

9. Who will be doing the inspection?

This is mainly for the multi-inspector firms, but Ian Mayer of IM Home Inspections in Woodland Hills, CA warns to watch out for the bait-and-switch. The owner of the company may have really great certifications, but he sends out the guy that was just certified last week to do your inspection.

10. What warranties/guarantees are included with the inspection?

A home inspection is, by definition, a snapshot in time. It shows the condition of the house on the day of the inspection. None of us have a crystal ball to predict the future of a house, and sometimes sellers will intentionally hide known defects. Some home inspectors offer various warranties and guarantees with their inspection. Make sure you read the fine print on anything offered to ensure you understand what you are getting and what the limitations are. Frank Rotte of Certified Inspection Services, LLC of San Diego points out that many repairs are actually under the deductible, so the buyer ends up paying for the repair anyways.

11. How much does the inspection cost?

This is the last question you should ask, and it’s really only so you know how much to write the check out for. In other words, don’t price shop, and don’t look for the cheapest inspector. (How much are you paying for that house again?) James Braun with Braun Inspection Consultations in Jefferson City, MO rightly says that “A good inspector is not cheap, and a cheap inspector is not good.” You are making what may be the largest purchase of your life, do you really want the cheapest inspector you can find to do your inspection?

Thank you for sticking with me for this long, and I hope that it has been informative for you. The best home inspectors are those that work for you, and inspect each home as if they, or their favorite relative, were buying it. These home inspectors have nothing to gain except providing you with the best inspection they can, which allows you to make an extremely important decision. Now, go out there and hire the best home inspector you can find.

Popular Home Improvements

Many home owners have been showing so much interest in improving their homes in the last few years. Most of them have already executed varying improvement projects for their homes and have been appreciating the results of this fruitful undertaking. Home improvement not only helps in raising the value of a home but also brings out a better and more attractive look for the home. This makes the owners feel more comfortable and confident with the place.

There are varying home improvement ideas that are available and ready for execution. The size and design of your house matters a lot and this can actually hinder you from applying some of the ideas. Within those varying ideas, there are a number of them that can be applied in most homes because of their usefulness and ease of design. They are the popular home improvements. The list below shows those improvements and can be used as a guide for choosing the best home improvements to go with.

1. Upgrading bathrooms and kitchens

With the increasing rise in technology, many bathroom and kitchen appliances are continuously being developed. Some of the appliances are oh so useful and economical. This makes them require a certain setup that cannot be accommodated by the old school room designs. This raises the need for a makeover on those places. New and highly attractive bathroom and kitchen designs that raise the value of a home are also coming up at a high rate, and this is making many home owners opt to go with those designs as they are truly elegant.

2. Using boilers

Boilers are highly valued assets that are continuously gaining fame and use because of the benefits they bring to home owners. Acquiring and installing them requires a good sum of money and this forces the value of a home to rise immediately after a boiler is installed. Apart from new installations, people are also replacing their old boilers with new ones that are more expensive and coming from reputable companies.

3. Double glazing

Many homeowners have been replacing their old windows with the double glazed ones due to a number of reasons. Double glazed windows are good at reducing noise and heat transfer. They are also important in improving home security as well as enhancing its value. This makes double glazing an important feature for homes and has thus been gaining a great acceptance and application by the people.

4. Home garden makeover

A home garden is an important part of the home’s face. Having a decent garden helps in creating a better image of the home and in turn raises its value. The home also becomes more attractive and this is something that every home owner wants. Being an easier and more economical way of improving the overall homestead, garden makeover is a very useful step and has thus been considered to be part of the popular home improvements that have been trending.