How to know you’re financially prepared to remodel your house

If you are confined to your home during the coronavirus pandemic, you may have opened your eyes to the endless possibilities to improve it. But home improvement can be costly, and how do you know when you are financially ready to tackle a project like this? Find out how m ((iStock)

If you are confined to your home during the coronavirus pandemic, you may have opened your eyes to the endless possibilities of improving it – swapping out that old, worn carpet for wood floors, or updating your kitchen cabinets. You may have considered converting the extra bedroom into a new home office now that you work from there.

While the thought of a makeover can be exciting, it can also be stressful, especially when it comes to figuring out how to pay for it. A personal loan can take the pressure off your finances. However, knowing how much to borrow depends on your needs and budget. To better understand what you need to do to remodel your home, consider these four steps:

  1. Evaluate what you want to remodel in your home
  2. Obtain initial estimates
  3. Take additional costs into account
  4. Use a personal loan calculator

When considering a personal loan, take advantage of an online marketplace like Credible to make sure you are getting the best interest rate and lender for your needs.


Evaluate what you want to remodel in your home

The conversion is seldom as easy as expected. Do you want to give the room a fresh new look or does this kitchen just not work as well as it used to? And while updating your kitchen may be high on your remodel list, the first thing you should consider is what you’d like, what your budget is, and whether you plan to sell your home soon or stay there for years.

Are you just looking to replace the kitchen countertops, or is it a large project to remodel the kitchen with all new floors, cabinets, fixtures and appliances? When you know your end goal and measure it against your budget, you can decide how deep you want your remodeling project to go.

Obtain initial estimates

Whether you are replacing the carpet in the living room or redesigning your entire living space, it is best to have a basic budget. A home improvement can save you money, but it can turn into a mess if you’re not sure what you’re doing. Knowing which tasks you can handle and which should be left to the experts can save you a lot of stress in the long run.

Licensed contractors and builders will be happy to make you an offer. Getting estimates from more than one contractor will give you a better idea of ​​the average cost and will be able to negotiate the final price for your home remodeling from start to finish.

You should also monitor invoices and material costs, and check with your contractor about any discrepancies. If you buy updated materials through your builder, you may also pay an extra charge compared to buying the upgrades yourself.

If you need help paying for your home renovation project, a personal loan might be the way to go. Credible allows you to instantly compare interest rates and lenders to find a term and amount that suits you.


Take additional costs into account

Sticking to your budget is one of the most important aspects of remodeling your home. Because of this, it is a good idea to take into account any unexpected additional costs during the remodeling, such as: B. Go out to eat or spend a night or two in a hotel. Building permits may also be required, which can be costly to complete the work you have planned.

If you pull up the carpet to add new wood flooring, you may also discover a crack in the subfloor. Or when you install a new shower you notice a small leak and find that the plumbing needs repairing. Additional costs can add up. So it is a good idea to include some sticker in your budget to avoid sticker shock.

Use a personal loan calculator

Personal loan interest rates are typically lower than credit cards, making personal loans an excellent option for all of your home improvement needs. Interest rates and terms vary from lender to lender, but borrowers with good credit are likely to get a much better APR than someone with bad credit.

To get a better idea of ​​your monthly payments, use a personal loan calculator so that you can plan your budget and see how much principal and interest you will be paying over the life of your loan. That way, you only borrow what you need and don’t have to dive into your savings or retirement funds to cover the costs.


Next Steps

When applying for a personal loan to fund your home improvement business, it pays to check Credible for interest rates and lenders first. That way, you can be sure that you are getting the best prices and terms to finance your home improvement project and maximize your budget.

Then you want to estimate the total costs (taking into account any extras) for your home improvement project and get pre-qualified with your lender. If you have any questions, visit Credible to connect with expert loan officers and answer all of your personal loan questions.


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