Home Renovations and Loans

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How to finance a home improvement projectFinancing Your Upgrades

Now that you know what you are renovating, who your contractor is and what it will cost, you need to finance it. If you already have the money that’s great, but if you don’t then you need to figure out where the money is going to come from. Sometimes you can use some of your savings to start your project, but I would recommend applying for a loan first to make sure you will be able to finish the project. Let them know that you will be paying out of pocket for however much you can and only need enough for for the rest. This looks better on you when you do the application. It will also save you money on the interest you wont have to pay back.

You can apply for a home equity loan or a home equity line of credit. Either one of these will help pay for your renovations and the line of credit is good if you are going to have renovations that will take a while to do, say over a span of months or even years. The size of your project will determine the size of your loan. In some areas, you may be able to do the work yourself and minimize the cost. This, however, will increase the time it takes to get the job done.

Understanding the Reasons For Your Renovations

Figuring out why you are renovating will help you determine what you want done as well. If you are doing it for yourself, then you will choose sinks, bathtubs and other such items according to your tastes. If you are doing it to increase the value of your home to sell it, you will want generic colors and such to make it look nice but still be appealing to buyers. Keeping this in mind will save you money and keep you from going over budget.

If you are doing the entire house and want it done in a minimal amount of time, you would be well advised to either stay with family or rent a temporary place until the work is finished. You can easily store your belongings or take them with you to make sure they are out of the contractors way and keep them from any damage as well.  Otherwise, you can always work out what sections of the house get done first and avoid those areas until each is finished.

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Christina Moore

Christina is a freelance writer, and stay-at-home Mom in San Diego, CA. She is enjoys staying fit with weekly yoga sessions, running along the beach.