The Secret To Securing Home Improvement Financing
The Secret To Home Improvement Financing
I Need Home Improvement Financing, Where Do I Start?
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So, you are ready to start a renovation journey! But where do you start? Do you get a contractor and then financing? Do you go the other way around?
What about financing options? There are so many choices. How do you know which one to choose?
How do you know which home contractor to choose?
This easy resource can help you resolve these questions and guide you on your journey to a stress free and effective renovation journey.
Home Improvement Financing In 7 Simple Steps:
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1.Start with creating a list of your immediate and future needs throughout your home.
Organize those needs in order of priority to give yourself a good idea of what is most to least important to you.
2. consider your finances.
Consider how much money you currently have to put towards your project.
Then take into account what type of payment would you feel comfortable with monthly.
3. Look at the variety of financing options available to you and select 1-2 that make sense for your situation.
There is no one size fits all for financing options. Selecting the right option for you will require some research and careful consideration.
You can use this simple guide to find the financing solution that is right for you!
4.Reach out to your preferred lenders to get pre-approved.
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This will give you an idea of how much can you realistically get approved for and help you find the best interest rates and payment plans for your situation. Home renovation loans are very similar to mortgage loans and in most cases your loan approval amount is based on your debt to income ratio, credit score and equity in your home. Knowing this information ahead of time will help you make wise and informed decisions on what a realistic investment amount will be for your project.
5.Research your local contractors.
Because there are so many different contractor types you may get a range of quotes and prices, it is important to know the value of what each type of contractor can offer you.
Consider what you find valuable throughout the entire process. Is it project management? Is it design? Do you want to design the space on your own? Do you want the contractor to handle the whole project? Is your timeline a big factor?
Knowing the answer to these questions will give you great insight into which contractor will offer you the best service for your needs.
You can find a guide on choosing the right contractor here.
6.Reach out to your chosen contractor list with your priorities and investment intentions.
In this meeting you will want to discuss your renovation priorities, and disclose your investment intentions. This information will allow your contractor to help you reach your goals and find a scope that is realistic to you.
Often times renovating your home is a game of plug and play, things like layout changes and taking down walls generally take up more of your resources than simple cosmetic updates but there is always room for substitutions. If a layout change is high on your list, then perhaps choosing less expensive materials will change your investment scope to better match your needs.
( Ex: choosing luxury vinyl plank instead of hardwood flooring.)
7.Come to an agreement
Once you find your ideal contractor and settle on a scope and investment ballpark, reach back out to your financing company to complete final paperwork with your quote in hand. Your financing company will guide you on your final steps and lead you on your way to your new renovation!