How To Finance Your Home’s Remodel the Smart Way

How To Finance Your Home's Remodel the Smart Way

Remodeling your home is a great way to invest your money, and a few key additions could increase your property value by a substantial amount. Unfortunately, financing those upgrades and add-ons can be difficult if you don’t plan ahead. These few tips will help you reduce the overall cost of your next remodeling project without having to cut corners.

How To Finance Your Home's Remodel the Smart Way

Work in Steps

Instead of trying to remodel your entire home in just a few weeks, you might want to break this project up into more manageable steps. During the first month, you can work on simple cosmetic projects such as having a company like Danmer Custom Window Coverings replace your old shutters and adding a fresh coat of paint to the walls. Once you have saved up some more money, you can then tackle a structural project like replacing the roof or adding a room.

Have an Emergency Fund

No matter how careful you try to be, a mishap can still happen at any time. Saving up a little bit of money to cover emergency repairs and other unexpected expenses is an absolute necessity. The contractor that you hire will most likely suggest having a financial cushion just in case there are any hiccups in the process.

Stick to Practical Upgrades

It might be tempting to install a luxurious pool in your backyard, but practical upgrades and additions need to be your priority. In addition to minor cosmetic updates, you can also work on the HVAC system, electrical system, foundation, plumbing, and roof. Upgrading those areas will increase the value if your property and make your home more comfortable.

Get Multiple Quotes

At the very least, you should try to get quotes from three different contractors or building companies. You can then compare those quotes with one another to get a better idea of what the total cost will be. If you aren’t happy with the original three quotes, then you should ask friends and coworkers for recommendations. This will make it much more likely that you’ll find an honest and high-quality deal that you’re pleased with after the remodels are finished.

Clean Up Your Credit Score

Your credit score needs to be as high as possible if you plan on taking out any loans or refinancing your home. Bumping your score up by just a few points could reduce your interest rates by a significant amount and save you thousands. You also need to address any outstanding blemishes on your credit score.

There are many different ways to save some money when working on your home, but you should never work with uninsured or unlicensed contractors. Hiring an unlicensed or uninsured contractor could result in shoddy work, huge fines, and serious damage to your home.