• Tweet
• Email
• Sharebar

• Tweet
• Email

If you’re looking to improve your home in some way with either basic repairs, some minor upgrades or even a complete remodel then you may need to consider getting a loan to pay for both the labor and materials involved.  With the credit markets slowing down and with a lot of homes not having much equity it may initially be difficult to borrow the money you need for that home improvement project.

That being said, many local banks are still an excellent place to borrow money from because many smaller banks did not make the risky investments in real estate and financial mortgage products that larger banks did.  Even if you don’t have any equity in home, you can still look into borrowing money for your home improvement through an unsecured home improvement bank loan.

Again, smaller local banks are your best bet for this because they have a vested interest in helping the community that surrounds them become more desirable.  Many small local banks also have slightly looser lending practices when it comes to unsecured loan, especially those designed to fix up a house.  Some banks give their loan officers much more autonomy when it comes to making decisions about who gets a loan and who doesn’t.  This is especially helpful if you want a home improvement loan but have a bad credit rating.

When you go to apply for an unsecured loan for a home improvement you’re going to want to do a few things to improve your chances of getting the loan.

Have A Detailed Construction Plan

When you go to the bank and ask for an unsecured loan you’re going to want to have as much information as possible about the improvements you hope to do to your home.  You’ll want to have photos of your home, include a reason for why you need or want the work to be done and you’ll want to try to compare your home to the others around it.  If three of your neighbors replaced their roofs in the last two years and you need to do the same then mention that, especially if all your homes were built around the same time.

Have Estimated Cost Quotes in Writing From Licensed Contractors

Most banks won’t just give you a large unsecured personal loan based on your word of what a job will cost.  You’ll want to have at least two or three complete price quotes from contractors who are willing to do the job.  It may be helpful to also have them include the full scope of work, ranges of pricing, references they’ve worked for in the past and even include an approximate time frame for the work to get done.  All of this will help a bank decide if the unsecured loan they’re going to give you will be used wisely.

Also, be sure to get the cost estimates from qualified contractors. Don’t ask your cousin Bernie to give you a ballpark price for any sort of home improvement if he’s not licensed and able to do the work. It’s important that you demonstrate to the bank that you understand the size of the project and the seriousness of the project and that you present yourself as someone who is ready, willing and able to pay the loan back in a timely and responsible manner.

Dress Professionally

This seems like an obvious one, but you’re going to be asking someone for a large amount of money so that you can improve your house.  The least you can do is dress well, speak well and generally try to give a good impression. Think of applying for a bank loan as a sort of job interview. When you work at a job you are given money in exchange for your time and energy which, hopefully, makes even more money for the company you work for. The same is true with a bank loan. You are basically asking for the chance to make money for the bank. They will give you a set amount and over time you will pay back a set amount with interest.

Bring Proof of Income

This will probably be required anyway, and you’ll probably have to fill out plenty of paperwork just to apply for the loan.  Having a steady job, living in the neighborhood for an extended period of time and even using the bank for your own savings and checking accounts are all things that may convince a bank to give you a loan to improve your home.

Generally, try to be prepared and ready for questions when you apply for your unsecured loan from a bank.  Don’t be discouraged if the first bank you meet with turns you down.  Call another bank, making an appointment with a loan officer and try again.  Each time you give your presentation and explain your need you’ll be more confident and more prepared to answer the loan officer’s questions.

Whether you have a small or large home improvement job planned you’ll be much better off and greatly improve your chances of getting a bank loan if you present your need well and show how improving your home is a solid investment for the bank you’re working with.