Home Renovation Loan Is Only A Few Minutes Away With These Eligibility Criteria

Home Renovation Loan

A house is a building that people use to declare who they are. If the same applies to you, it is quite natural that your aspirations about your house change as your family grows. And you may be thinking of renovating a home. Finance is the toughest thing to avail for a majority of people. But It is not that difficult anymore. You can easily have a home renovation loan if you fulfill these eligibility requirements:

  • Credit score: 750 or above
  • Age: 21-70.
  • Other factors like your liabilities, assets, and your monthly income will have a say in determining your chance of getting a home renovation loan.

Documents required

You will need to submit the following documents when applying for a home renovation loan:

  • Proof of your age
  • Bank statements, as specified by the application form
  • Documents related to your property
  • Proof of address
  • A quotation for the cost of repairing
  • The duly filled application form

This list may vary based on the bank or any other lender you choose.

Upon submitting the required documents, your lender may request a face-to-face negotiation. During this time, the agency verifies the documents. It will evaluate the repayment capabilities.

A background check will follow the document evaluation. The agency investigates if the information you have given is accurate. Next, you will be asked to pay the processing fee. This may give you an impression that the loan process has begun. But this too is not the time to relax. With this, the lender approves your loan. The agency then checks the property to check its technical information.

The lender keeps all your original documents with it. You will get it only after you have paid the entire loan amount.

Improving your credit card

Credit score plays a vital role in helping avail a home renovation loan online or offline. You might be able to arrange a loan with a low CIBIL score. But your lender is going to charge you an exorbitant rate of interest. Otherwise, you will be asked to submit a guarantee. Given below are a few tips to improve your credit score so that you can get loan at an affordable rate:

Evaluate your credit report

The first thing you should know here is what is helping or hurting your credit score. Take a copy of the credit report from the CIBIL official portal. And check for late payments, collections, multiple credit cards, hard inquiries on your card, and inaccurate information; these will adversely affect your credit score. Correct errors. You will need to wait for a while to get rid of the negative impact of loan defaulting or any other acts of the kind.

Pay your bills on time.

Your payment history plays the most important role in determining your home renovation loan eligibility. Do the following to make sure that the bills are paid on time:

  • Maintain a filing system.
  • Transfer all your bills onto a single credit card. This will eliminate the possibility of forgetfulness on your part.
  • Automate all your bills.

Maintain your old credit cards

Do you have an old credit card? Try to maintain it as long as you can pay your dues on time. This will help you build up your credit history. It will add up to your credit score in the future and increase your chance of availing of a loan.

Minimize your credit utilization ratio

Spend with discipline. See that you do not exceed 35% of your allotted credit limit. Reaching its full extent will present you as an unreliable spender. And your prospective lender will have second thoughts when considering your home renovation loan application.

You may also consider consolidating your debts. If you have lots of debt, explore the possibility of taking out a debt consolidation loan. This way, your debts will be packed into a single credit card. And you will only have to worry about it.

Improve your CIBIL score, prepare a budget for your monthly income and get a home renovation loan. You should always declare who you are in style, in a way that goes with the time.