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Renovation Budget



Your Renovation Budget

When renovating your home, it is important to set a total renovation budget and stick to it. Be sure to round up and add extra for unexpected costs that will pop up. You will want to secure multiple quotes for the project to compare costs. If the project is not being paid for in cash, calculate the cost of financing. Include the option of completing some or all of the project yourself if it’s something you are comfortable doing. If you are completing a project on your own, be sure to research required county building permits and neighborhood association approvals. 

An important part of your renovation budget will depend on what parts of the renovation you must have and what parts you can live without. Read the fine print carefully when working with a contractor and be sure the project has pre-determined timelines for when it will be complete and what is included in the cost. Lastly, be sure to keep all receipts, estimates, contracts and other paperwork associated with your projects. 
 

Helpful Hints To Stay On Budget

  • If you are able to do parts of the job yourself be sure the contractor reduces the cost of the project to account for the portion you will complete. 
  • If you know a reliable and insured handy man, with references from past customers, this option could be less expensive for some projects. 
  • For big projects, going the DIY route or using a less experienced handy man can end up costing you more if a portion of the job is completed incorrectly and has to be fixed later. 
  • Hold off on the renovation until you have saved at least a portion of the projected project cost. 
  • Barter services with friends if you have friends or family with the skills to do some or all of your project. 
  • Complete the project in the off-season. Significant savings can be gained by working with a company during their slow season.
 

Financing Your Renovation

If you have lived in your home for multiple years, you may have equity that can be used to finance your renovation. Home equity loans require appraisals and the condition of your home is important. Obtain the appraisal before you begin a project to ensure the current condition of your home doesn’t negatively impact the appraisal value. 

You may also refinance your home mortgage to receive cash back, this is similar to a home equity loan but is not the same thing. 

A credit card can be an option for renovation costs, especially if you earn rewards and plan to repay the entire amount before interest accrues. You may also use an unsecured line of credit, depending on your credit rating and the amount being borrowed.

   

Talk to us

To apply for a mortgage or get answers to questions, call our Mortgage Specialists at 317.558.6160 or 866.367.8600 or email us at forummortgage@forumcu.com.

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