Home improvement is a popular way to add value to your property or make the most of your living space. You can do it yourself or hire a contractor. But before you start renovating, you should think about your goals and whether or not the renovations will help you meet those goals.
Increasing your home’s resale value is often the main reason people remodel their homes. But it’s also a good idea to consider how it will affect your utility bills and whether or not the renovation is worth the money you’re spending.
Inflation and a potential recession are two factors that could influence how much homeowners spend on their home improvement projects in the future. That’s why it’s important to know the average cost of home improvements before you begin one, especially if you’re planning on selling your home in the near future.
A good rule of thumb to follow is to stick to a budget that’s about the same as your monthly income. This will ensure you don’t get into trouble with overspending and keep the project on track.
If you’re planning on using a home equity line of credit (HELOC) to fund your project, be sure to use a lender that offers low rates and terms, as well as an interest-only option. This will make your repayments more manageable, and you’ll have the ability to use the money as needed throughout the life of your loan.
Your mortgage provider will help you decide what type of loan will work best for your project. That’s because your individual situation is unique. For example, if you’re planning to do a major renovation like a new roof, then a one-time personal loan or cash-out refinance may be a good fit. However, if you’re looking to complete a smaller renovation that will have an impact on your monthly expenses, then a HELOC may be a better fit.
The right lender will consider several things before approving your loan, including your credit score, your debt-to-income ratio and your ability to repay the amount borrowed. They’ll also check to see if you have any assets outside of your home that can be used to help cover the costs of your project.
Choosing the right contractor is important when it comes to home improvement. You don’t want to hire someone who is unlicensed or doesn’t have the proper insurance. You also want to be sure that they’re experienced and have a strong reputation in your area.
You should always ask to see previous job references. It’s also a good idea to ask to see the contract before you sign it. It should include a description of the work that will be performed, the materials to be used and the estimated date that the work will be completed.
You should also check whether or not the home improvement contract contains an arbitration clause. This will protect you in the event of a dispute with the contractor. It will also allow you to bring an arbitrator in to try and resolve any issues.