When it is time to start you remodeling project, it sometimes seems like there are so many decisions that need to be made. But in reality, it is a few key decisions that make all the difference. And one of the biggest questions you’ll ask yourself is this:
What’s the best way to pay for my kitchen or bathroom remodel?
It would be great if there was a ‘one-size-fits-all’ answer that fit every situation. Even though there isn’t any one right solution for every homeowner, there are some steps you can take to help you sort through your options.
Here are 4 key tips for any Kansas City homeowners looking to finance a kitchen or bathroom remodeling project:
Tip #1: Find out the cost and decide how much cash you want to use.
In order to get a handle on the amount you’ll need to finance, a good starting point is to tie down a more precise cost for your remodel. Reach out and ask for a quote from a top-quality Kansas City remodeling company.
(If you want a risk-free quote and consultation from the top kitchen and bath remodeler in the Kansas City area, Contact Us).
Once you have a good handle on costs, the next question to ask is how much cash (i.e. – savings) you want to use toward your project. Some homeowners want to do it completely out of savings, and some want to finance it all. Both are viable options, but the most common solution is too use some of both.
Once you’ve figured out how much cash you want to use, you’ll have a much firmer grasp of the amount you want to finance.
Tip #2: Check your credit score and look for any mistakes on your credit report.
This tip is actually a good idea whether you’re financing a remodel or not. But doing it before you finance a significant amount is essential. Mistakes are sometimes made on these reports and identity theft continues to be a big problem.
There are many free services that will send you your credit reports or you can request copies of your report directly from the major credit reporting agencies. Double-check your report and make sure everything is accurate.
Tip #3: Explore the various ways to use your home as collateral for a financing a remodel.
For most homeowners, using the equity they have built up in their home is the best way to obtain financing. There are several ways to do this, including:
Home Equity Line of Credit: This is just what it says – a revolving line of credit that uses your home as the collateral. There are a lot of variables that go into what a bank will approve, but homeowners can typically expect to get approved for about 75% of their home’s value, minus any balance on a mortgage.
Second Mortgage: This is a loan that again uses the value of your home as collateral. Usually it is set up just like the primary mortgage on your home. You can get a fixed amount of money, which you then pay back at a fixed rate with regular monthly payments.
Refinance Your Home and Take Cash Out: When you refinance your home with a new mortgage, you can pay off the old mortgage and then take out cash. If you can get a lower interest rate on your new mortgage, this can be one of the most attractive ways to finance your remodel.
Tip #4: Ask a reputable remodeling company for any recommendations during your consultation.
Be sure to check with a top-quality Kansas City kitchen and bathroom remodeling company for more ideas and tips that may apply to your particular situation. Remember, a well-run remodeling company will have completed thousands of projects and can use that experience and knowledge to benefit you.
For a free consultation and quote, Contact Us.Tags: financing, homeowner tips, remodel financing, remodeling financing