Follow These 5 Steps to Take a Home Renovation Loan
A home is a place where we spend most of our time with our loved ones. After a few years, consider revamping it or adding additional rooms. Also, planning a renovation is necessary if there are upcoming nuptials or any other special occasions.
A home’s renovations include repainting, adding a modular kitchen, adding additional rooms, new wardrobes, new floorings, etc. However, this is expensive, external funding assistance is needed. A House Renovation Loan can be very handy and help you carry out the renovation or repair without any hassles. The current Home Loan interest rates for renovation are comparatively less than what you borrow for a Home Purchase. If you seek a House Renovation Loan, you must follow 5 vital steps to ensure you grab the best deal from your preferred loan provider.
5 Steps to get the best Home Renovation Loan
Set Your Home Improvement Goal
Always remember that getting a House Renovation Loan is one part of the journey, and the repayment part is another. You also need to be wary and plan the repayment of the loan in a calculated manner. Hence, figure out only the necessary renovation needs and then apply accordingly.
Don’t add requirements that add no value to the final renovation outcome. For example, suppose the paint done on the house is still in good condition; skip this part or just add only one layer to improve its appearance. Therefore, only invest in renovation and repair for the essential tasks necessary so that the amount available is not too much, which can affect your monthly budget. Also, plan your loan based on current Home Loan interest rates to reduce EMI as much as possible.
Explore The Loan Market & Search For A Pre-Approved Offer
Compare various lenders and their current Home Loan interest rates to make an informed decision so that money is saved in the long run on the interest. Find out about the repayment terms and other features attached to House Renovation Loan that can add value to your repayment journey and make it smoother.
Select a pre-approved offer to help get House Renovation Loan quickly and easily. Such offers are given to borrowers with good creditworthiness; hence, maintaining a good credit score can be very handy in increasing your approval chances.
Find A Lender With Simple Eligibility Criteria
Today, getting a House Renovation Loan has become easier due to online processing. Most banks and NBFCs offer loans through their official website to ensure borrowers have the best experience and get instant approval if the eligibility criteria are met.
However, current Home Loan interest rates vary from bank to bank, and also the eligibility criteria. So, to ensure your loan application doesn’t get rejected, look for a House Renovation Loan with simple eligibility criteria.
Check The Complete Cost Of the House Renovation Loan And Budget Accordingly
Budgeting your House Renovation Loan is vital before you proceed with the application. When applying for a loan along with current Home Loan interest rates, you should also look for additional costs, such as –
- Processing fees
- Foreclosure charges
- EMI bounce charges
- Statement charges
- Secure fees for online application
- Part-prepayment charges
- Penalty interest on missed EMIs
Plan Your Repayment Before You Proceed
Rather than relying on things that will fall into place, it is best to plan on how to repay the EMIs with minimum hassles. Use the EMI calculators the Kotak Mahindra Bank and choose the loan amount, repayment term and EMI based on your current financial conditions. Although home renovation is good for your happiness, if it’s not affordable, there is no point in going for it. Therefore, if you have a good repayment plan beforehand, you can enjoy your renovated home and manage the EMI with minimum fuss.