Season after season people come up with new ideas for their home or specific space remodeling. For some it is a desire and for the others it is a necessity. Our wishes and desires can not always be a reality due to financial situations. New construction, addition, kitchen, bathroom or any type or remodeling is not a small expense. Before hiring a remodeling contractor you should go through detailed analysis of the situation. Every little detail will count. The best way is to grab a piece of paper and start with:
- Urgency (Do you really need it that bad?)
- What’s the purpose of your project and is there a ratio of cost benefits ?
- Is the work possible for your budget ?
- What are the cons and pros for the project (Value Analysis)
Do Your Own Research
There is a lot of information and pricing for your dream remodeling project. Internet makes it a lot easier for consumers to find the right answer. There are options to compare pricing when picking what materials you want to use. For instance, laminate vs. hardwood flooring. There are many ways to save money without losing quality. By buying products that were trending last year you are going to save without a doubt. Make sure to buy extra for the future repairs since the production of certain products may be discontinued. Depending on the size of your remodeling project you may want to look around for storage units to keep your belongings in the clean, temperature controlled place.
In case of the repairs insurance providers may cover the cost it all depends on your homeowners policy. It would be a good idea to check if you qualify. There are other options such as municipal and state grants. Sometimes you may get assistance from nonprofit organizations for your home improvements or essential home repairs. When installing new high-efficiency HVAC ( Heating, Ventilation, Air-Conditioning ) equipment or any other environmentally friendly upgrades you can definitely search for incentives, rebates or tax credits from utility companies or government agencies.
Do It Yourself or No
Coming back to the amount of information that’s available on the internet, remodeling may seem like an easy and affordable solution. There are videos and tutorials on pretty much any remodeling or repairs. Let’s start the evaluation of what it takes to do a remodeling or repair on your own. First step is to arrange all the necessary permits and work to codes. Secondary, make sure you possess the practical skills and necessary equipment. The “do it yourself” process requires a lot of time and patience. If something goes wrong with your home remodeling you will be fully responsible for it. Mistakes may lead to financial trouble as well as insurance claims.
Wise Usage of Credit Cards
Home remodeling or home renovations can be financed. A lot of people are being surprised by this idea. Depending on your credit limits it actually makes more sense than you may think. If your remodeling project is worth less than $15,000, you can pay for it with your credit card without extra paperwork at the bank. The benefits of credit card usage is that your debt is unsecured and you are not risking of losing anything if you go behind on payments. Also, you are earning many reward points. Another way to take advantage of your credit card is low or no interest rate promotions. Make sure to pay off the balance before you get hit with interest charges which may get up to 25%.
For home renovations or home remodeling projects costing between $15,000 and $70,000 a personal loan would be a better idea and the only way to go. Very often this type of loan is unsecured and doesn’t require your home to be a collateral. The APRs are usually high averaging around 8 percent. Of course, everything depends on your credit history, loan amount and term.
There are also other ways to get your home remodeling going, such as home equity line of credit also known as “second mortgage”. FHA 203k loan could be your other option. Another way to finance is Pear-to-Pear lending, cash-out refinance and lastly customer financing. There are major remodeling contractors who will be able to help you with in-house financing. Not every remodeling company has that option, but if you spend time looking, you will definitely find one.
Comfort Home Remodeling Design has been ranked among the best remodeling companies in Chicago land area. If you have any questions regarding this article, home remodeling or new construction, please feel free to give us a call or leave your questions below in the comment section.