Home Improvement Loans Illinois

How do home improvement loans work in Illinois?

Home improvement loans in Illinois work like home improvement loans in other states, though, some lenders may be exclusive to Illinois. Home improvement loans are simply personal loans designed for home improvement projects. They can be a great option if you need funding quickly.

Although the steps involved in obtaining a home improvement loan can vary based on the lender, below are the stages you will typically go through to qualify for a home improvement loan in Illinois:

1. Research & compare offers: Ideally, the process begins with good research, maximizing your ability to compare multiple offers at once. To obtain offers you will first need to provide lenders with some basic information and a soft credit pull. Once completed, you can get a pre-qualified offer. Acorn Finance makes finding the best home improvement loan offer in Illinois easy. Within 60 seconds or less you can receive personalized offers with no credit impact. Our network of top national lenders can offer home improvement loans up to $100,000, depending on credit score.
2. Select a loan offer: After you find your perfect offer and you reach out to the lender; the lender may ask for more information. This may require a hard credit pull to finalize the process. Pay attention to factors like cost, fees, and payback periods. Different fees to look out for include an origination fee, document preparation fee, credit report fee, title search fee, notary fee, annual fee, and prepayment penalties.
3. Underwriting: After you reach an agreement on a loan with a lender, the underwriting process will begin. During this step, lenders verify information like income and employment. If the lender feels that they can assume the risk of the initial loan offer, they finalize and approve it.
4. Money transfer: Most lenders will deposit funds as a lump sum (all at once) minus fees. Then, if there are no spending restrictions, you can use the funds as needed.
5. Repayment: Most home improvement loans come with fixed terms meaning that the monthly payment is fixed, and the term is predetermined, typically two to five years. For example, you may repay $300 per month for 36 months. Whatever the agreed upon amount, you will need to pay it every month until the loan is paid off. If there are no prepayment penalties you can pay more than the minimum each month, which should be applied straight to the principal.

Is getting a home improvement loan in Illinois worth it?

A home improvement loan is only worth it if you see the benefit of it. There are several options available to finance your home improvement projects, so you need to determine the one that works best for you. Several factors might make it worth it, such as needing cash quickly in an emergency situation. Another factor to consider is how much the project will improve the value of your home. Last, it will be worth it only if you feel that the interest rate you are obtaining is competitive so that the total cost of the project isn't exorbitant.

How do you apply for a home improvement loan in Illinois?

If you're ready to take action to apply for a home improvement loan in Illinois, it's a good idea to take the following steps.

1. Check your credit report. You can access a free copy of your report from one of the three main credit bureaus (Experian, TransUnion, and Equifax). You will want to do this to ensure that there are no errors on your report before applying for a loan.
2. Research. There are so many options available to finance your new home improvement project, it can be overwhelming. To simplify the research process, consider using Acorn Finance. Our network of top national lenders has competitive terms and high rates of approval. Illinois homeowners can check home improvement loan offers up to $100,000, depending on credit score.
3. Choose the right offer. After comparing several offers, choose the loan amount and lender that best meets your needs. Your choice should consider several factors like total loan costs, the monthly payment, and interest rate. Some lenders may even sweeten the deal with perks like discounts for using autopay.
4. Submit documentation. After you find your best option, you will need to solidify the contract. At this stage, the lender will likely require proof of income and a hard credit check. They may request other documentation as well.
5. Money transfer. Although approval times will vary based on the lender, you can expect your home improvement loan to come in as little as 1-2 business days.