The team at TexasLending.com reports that, with the economic troubles of the past few years, less people are buying new homes. But this has unleashed a new trend—homeowners seeking home equity loans to remodel existing living spaces. No longer are homeowners simply remodeling to be able to sell at a profit in a few years, TexasLending.com says. Now those homeowners are interested in remaining in a home to enjoy those improvements for many years to come.
With this in mind, TexasLending.com has begun the process of matching homeowners with the best home equity loan options. However, in some cases, these homeowners may be unable to qualify for a home equity loan. As TexasLending.com explains, home equity loans require a good credit rating and history, in addition to requiring that the value of the home is in good proportion to the value of the loan.
TexasLending.com first reviews a homeowner’s personal situation before offering options. Home equity loan approval may be tough for those whose home values have dropped significantly, TexasLending.com warns. And if a homeowner is struggling to pay bills, TexasLending.com cautions that he or she consider the closing costs associated with securing a home equity loan. Not all homeowners can afford these costs, which may total thousands of dollars.
In some cases, closing costs—which can include everything from an appraisal to title fees—can be reduced and even waived, depending on a homeowner’s situation. TexasLending.com will review a homeowner’s information and determine if that homeowner qualifies for any special offers currently available.
By securing a home equity loan, homeowners are able to renovate existing space to make way for family growth. TexasLending.com believes this is a great answer for homeowners who long to upgrade to a dream home but can’t afford it. Renovating a current home can also increase its resale value when the market does turn around. TexasLending.com knows that many homeowners today may not have that as an immediate goal, but it is definitely a long-range benefit.
Balloon payments can be enticing to homeowners, as TexasLending.com. These types of loans are often offered to someone struggling with mortgage payments, but they come with a stipulation, TexasLending.com tells clients. According to TexasLending.com, a balloon payment allows the borrower to only pay the interest for a specified term. The problem is, at the end of the term, the principal comes due in one large lump sum. Though few opt for this product, it is available and appropriate in certain circumstances.
Whatever a homeowner’s individual circumstance, TexasLending.com is committed to working one-on-one with each person to find the ideal loan for his or her needs. In a market where many homeowners aren’t able to upgrade to a new home, TexasLending.com believes home equity loans are a great alternative.
For more information, visit Texas Lending online at www.texaslending.com.
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