How to Finance Your Home Improvements
So you’ve made the decision to improve your home rather than move to a new one. What now? It’s time to start thinking about your financing options. At Great Midwest Bank, our loan options range from Home Equity Loans to Construction Loans, and we’re happy to help you find the best fit for your renovation needs!
A Home Equity Loan is a simple, less costly when it comes to a minor remodel. Our local loan officers will either use a new appraisal cost or a tax assessment to determine the current fair market value of your home, rather than basing the loan amount on the value of the home after the remodeling project has been completed.
In some cases, our Construction Loan is a better financing option, with local loan servicing and flexible underwriting using our own funds. The amount of this loan takes into consideration the value of your home after the major remodel is complete. The process of getting this loan is very similar to getting a loan to build a new home, including the consultation of an appraiser and general contractor. A Construction Loan from Great Midwest Bank offers a minimal down payment requirement and a “one-time close” feature with permanent financing included. It also offers interest-only payments during construction followed by normal monthly payments upon completion of the project.
A Great Midwest Bank loan officer will help you find the loan that best fits your home renovation needs, and can also help you refinance your mortgage during the home renovation process, if necessary. Refinancing could mean your mortgage now has an adjustable rate instead of a fixed rate. Upon completion of the renovation, your GMB loan officer can help you transition back into a fixed rate mortgage.
Though it may sound complicated, major renovation financing is simple with us. You can find everything you need to start the process by reviewing our Construction Loan Application Checklist here. Contact your local Great Midwest Bank loan officer or stop in at one of our conveniently located branches when you’re ready to get your home renovation project underway!