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SUPPLEMENT TO McHENRY PLA1NPEALER - PAGE 21 - FRIDAY, MARCH It, 1V78 A house is not a home until you put your own, personal "finishing touches" on it. A home means furniture, appliances, rugs, drapes. It also means having enough rooms for a growing family, and enough space for all your family activities. As a result, making your house into a home will cost money, plenty of money, which poses a problem for most people today. The problem is that most of us can't afford to make major improvements and have the available casn to pay for them on the spot. In view of this, you have to plan ahead. You have to 1) know whether you can afford to improve your home, 2) know the improvements you will need to make, and how much they'll cost, 3) know the best way to finance these needed improvements. This is where we can be of help, be­ cause we have plans for you. PLAN I: KNOW YOUR LIMITS It's important that you understand your limitations in two ways: 1) how many improvements are REALLY NECESSARY and 2) how much credit can you COMFORTABLY afford to handle. Be honest with yourself. Think carefully about each of these questions BEFORE you apply for a loan. Today, many people are finding they need to make improvements that will help conserve energy: a new furnace, power-saving appliances, additional in­ sulation, and more. These certainly can be viewed as NECESSARY. These are NOT, how­ ever. the ONLY improvements that would be considered worthwhile by your lender. You may have a growing family and be in need of more space. You may need to make major repairs on your roof. You may need to do some major remodeling necessary for a more archi­ tecturally-sound property. Whatever your purpose, think care­ fully about your reasons and also about the amount of financing you think you're capable of handling. One sound rule to follow when con­ sidering how much you can afford: don't exceed more than 20% of your yearly after-tax income. This means if you earn $10,000 a year after taxes, your debt limit would be about $2000. Keep within this range and keep in mind ALL your outstanding debts. If you follow this rule, you will know you can comfortably pay. * PLAN II: FIND A GOOD CONTRACTOR After you have made a firm decision about what improvements will be made, carefully look for a reputable company to do the work. Contact the Home Builders Associa­ tion in your specific county for a list of names of all reputable contractors. Or, ask neighbors, friends, relatives ques- Wants To Improve Their Home, The Problem Afford It tions about similar work they had com­ pleted. Ask for an evaluation. Business frequently comes from referrals, with "word of mouth" about good work an excellent source of information for you. A general contractor may be best for major work depending, of course, on your own knowledge of plumbing, car­ pentry, electrical work, and the like. This professional will be responsible for all phases of the project and aware of building codes and government reg­ ulations. PLAN III: UNDERSTAND THE CONTRACTS INVOLVED There will be two contracts involved: I) from your contractor and 2) from your lender. In the case of major work being done for you, make sure the contract is un­ derstood by both sides; that is, you should READ every word and make sure your interpretation is the same as that of the contractor. If you think it is necessary, call in your lawyer. Also, make sure you understand the terms of your LOAN CONTRACT. Ask about the annual percentage rates. Ask about the finance charges. Ask about the amount of monthly payments and the total amount of the loan. Ask what happens if you pre-pay the loan. PLAN IV: KNOW WHAT TO EXPECT As your lender, we'll be looking to see that you have a "good credit record". Establishing a record we consider to be "good" is not particularly difficult. Open a checking and savings account with us. Make sure your accounts are active. Use your checking account to pay bills. Add to your savings account. Next, apply for a charge account at a local store, using one of your accounts with us as a reference. When you charge items at these stores, pay your bills regularly. You can then use these accounts as references if you apply for our credit card, instalment loans, or a mortgage. Each of these steps helps you estab­ lish a good credit record. Also remember: it's wise to apply for a loan where you're already known. PLAN V: GET A GOOD DEAL ON A LOAN It makes good sense to make home im­ provements because you are adding to the value of your home. Which means, when you go to sell your home, your property will sell for that much more. It also makes good sense to get the best financing deal. We suggest you talk to us. We're sure you'll find our rates are reasonable, with service that's fast and reliable. We'll discuss your financing plans and help you work out a repay­ ment schedule best suited to your budget. Talk to us soon. You'll find we have plans for all your financing needs. Ufe Have Flans FwrTfou. WW"* STATE McH ENRY STATE BANK 3510 WEST ELM ST. McHENRY PHONE 385-1040 " • ^v.v.v^.v.-^v™v.mw,mTOy