May 15, 2019
Nothing beats the feeling of stepping out of your house the first time the sun is truly warm at the beginning of the year. Winter takes a toll on people’s sanity and their wallets, especially those who live in states like Kansas and Missouri who have some of the most variable climate zones in the Continental United States. Wayne L. Decker, one of the scientists at the Missouri Climate Center, has described Missouri’s climate as “marked by strong seasonality.” However, you don’t need to be a scientist to understand that Kansas and Missouri houses take a beating during the winter, and there isn’t much time to fix them up before the summer sun begins to beat down.
Need to make substantial repairs on your house before the weather gets too hot? Consider repairing your winter house damage with a title loan this summer.
Can I Use a Title Loan For Any Repair?
Unlike many other types of loans, you do not need to provide lenders with an agenda, estimate, or reason for taking out this type of loan. When you apply for a traditional loan through a bank or other credit-associated company, you usually must provide information about the reason for the loan. Sometimes, a lack of a reason during the application process or too general a reason can leave potential borrowers stuck when it comes to getting the loan they need. Banks, credit unions, and other financial institutions are wary to lend when the reason for lending is unclear.
With a title loan, you can use the money you receive for anything you want. Typical title loan customers have used their loans for everything from funding a vacation to putting a down payment on a new-to-them car. As long as you are paying off the loan that you were given for the value of your vehicle, no questions asked!
For more substantial home repairs, like re-roofing your entire roof or building on a home addition, a title loan might not be enough. Some title loan borrowers have received loans for as much as $10,000 in the past (for newer cars), but the average loan is $1000. This makes it perfect for repairing a leaky sink, fixing the furnace, or putting a down payment on the backup freezer that broke over the winter.
How Do I Get Started?
The title loan lending process is quick and streamlined, which is perfect for those in need of an urgent home repair. Fill out an application online or bring in proof of ownership, a license, and information about your income to a branch location. The title loan company will provide you with someone to walk you through the application and will approve you based on your eligibility. Once approved, someone will determine the worth of your car. Finally, your loan funds will be disbursed based on the value of your vehicle. You will hand over your car title and will drive away with both your car and your loan!
What Restrictions Are There?
As said before, there are no restrictions on what you spend your money on. The cash disbursed after the evaluation is yours! However, there are limits on who title loan companies will lend to. For Midwest title loans, you must be 18 years of age, own the car outright (including not having a vehicle with liens), and have a source of income. That’s it.
What are the Advantages of Using a Title Loan for Home Repairs?
- They are usually just the right size. Many larger banking or credit institutions offer few options for loan sizes. With a title loan, you generally get between $500-$5,000 for the worth of your car. The full value depends upon the condition of the vehicle, the make, model, and the year. However, most title loans will be enough to fund moderate to extensive repairs.
- You can often get them the same day. Homeowners can’t wait to repair their house if it is a repair as big as replacing their central air unit or fixing windows broken by the last big storm of the year. Traditional loan disbursement is anywhere between a week to three weeks at most, whereas title loans are disbursed the same day, providing you have all the documentation required.
- Payoff terms are much simpler and shorter. With traditional loans, borrowers are often paying off their loans over ten years or more. If the borrower has a high interest rate on their loan, this can mean spending quite a bit more over a more extended period. No one wants to pay off major home repairs for ten years. Title loans are usually paid off over months or a year, which means you pay less in interest and spend less time paying it off.
- Much like a house remortgage, you still get to use your car. When you remortgage your house, a bank is essentially giving you a loan for the worth of your home. While they legally own the house, you still get to keep living in it. A title loan is very similar. A lender will evaluate the worth of your car and will lend based on the appraised value. Then, you drive away with your vehicle and a loan.
- With certain credit lending options, you have the opportunity to keep your line of credit open with the title loan company. Lines of credit are available through many title loan lenders, allowing the borrower to pay off their original loan and decide if they want to take out a new loan. Usually, this comes just in time for repairs after the upcoming winter!
If your home is looking a little rough after one of our long and tiresome winters, come see us at Midwest Title Loan. We offer competitive pricing for the value of your car, and we work fast so you can get the money you need to make necessary home repairs. Visit us at one of our locations in Missouri — in Gladstone, St. Joseph, or Kansas City, or stop into one of our Kansas locations in Kansas City or Overland Park. Just fill out one of our online applications or bring the necessary information for an application in when you come. We look forward to working with you!