Finance Options for Your Home Renovation

Planning to renovate your house?  Before you begin any projects involving your house, you should take a look at your finances.  Do you have enough money on hand to cover the expenses of your project?  If not, how do you plan to obtain the necessary finances for your home renovation?

Before you look for financing options, you will first need to determine how much the renovation will cost.  Once you know your budget, there are several different avenues you can explore:

• Credit Card – If you have a high credit limit and your budget for renovation fits within that limit, you can use your credit card to fund your renovation. You can even call your credit card representative and have your total credit balance restructured to a monthly payment.
• Personal Loan – If you only need a small amount to cover the overall expenses, you can apply for a personal loan. What is good about personal loans is that they have low interest compared to other types of loans, plus you can choose to pay your loan within one to five years.
• Equity Loan – This type of loan requires that you have equity, usually in your house, secondary properties, or car. Since you have equity to assure the loan, the interest rates are usually low.
• Mortgage Refinancing – Refinancing your mortgage is another good way to obtain financing for your renovation.  Refinance your mortgage balance, but at a higher principal, so you will have extra money to cover your remodel and related unexpected costs that may arise.
• Loans from Relatives or Friends – If you do not feel knowledgeable or comfortable enough to take out a loan for your home renovation, you can simply borrow the money you need from a relative or a friend.  Just be sure you establish a repayment structure up front.
• Personal Savings – If you have a savings account, you can use that money to fund your renovation.  Or, borrow money from your retirement fund, if you have one, and try to repay the borrowed money gradually through monthly deposits. This way, you do not have to negotiate with other people or lenders nor will you have to deal with interest.

Before applying for loans or choosing a financing option for your home renovation, talk first to your financial planner, so he or she can advise you on what the best option is for you.

Jennifer Fields
Oklahoma City & Edmond Real Estate Agent
405.330.0031

Working Well With Your Hired Renovation Professional

Planning to hire a professional to renovate an area of your house? Mind these tips on how you can work well with these experts. It is not enough to simply call them, show them your room and let them work on their own until they finish the project. Always bear in mind that even if it is their job, you are definitely the one paying, and are very much involved. Your decision, your recommendations and even what you want matters most.

Here are some tips on how you can deal with renovation specialists.

• Implement proper communication. Communication is very vital in any project and this also includes renovation. You have to communicate your thoughts properly to your hired renovating professionals so they can easily carry out the tasks according to your desires. Also, you must understand every detail of your decision before starting out on the project or even buying the necessary tools. Moreover, it is best for your contractor to access you anytime of the day so any immediate decisions can be easily done.
• Always be informed. This means that you must open yourself to any information that your hired contractor offers you. An example would be their schedule of work so you and your family can prepare for the noise, the distractions, the mess and even the intrusion inside your house.
• Say what you want. It is your house being renovated so it is what you want that matters in this scene. Say what you want for your home and even tell your contractor what you do not.
• Visit showrooms twice. First alone and second with your contractor. Going on your own will open up to a lot of ideas and desires for your house. However, there are times that even if you want that sofa or that cabinet, it is not feasible at all. So, have your contractor go with you to tell you which will be ideal for your house and which are those that will only create a clutter.
• Be open. Even if what we want, we should get in this stage, there are times that what we want just don’t seem to fit right in and there are alternatives that your contractor might offer. Open up to these ideas and do not stick to the original plan. Usually, a much better idea will pop up in the middle of the project.
• Have a contract. This will keep things professional. Make sure also that whatever is stated in your contract must be specific and agreed upon by both parties.

Jennifer Fields
Oklahoma City & Edmond Real Estate Agent
405.330.0031