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5 Tips for Financing Your Next Home Improvement Project
Written by Marcus Goldman Sachs(R)
(BPT) - Whether it's transforming a fixer-upper into your dream home or just giving a makeover to your kitchen or bathroom, home improvement projects are on the minds of many new homeowners across the country. While many things about renovating your home are flexible, your budget might not be. In general, not a single floor board is laid, or a new countertop installed without money, which is why every home renovation project should begin with careful financial planning. To help homeowners with their renovation projects, Marcus by Goldman Sachs(R) is sharing budget-friendly home renovation tips. There are several ways to finance larger projects and it's important to explore your options to find the one that's right for you. Below are five important tips to keep in mind when deciding how to fund your next home project.
1. Shop around. The better you plan, the better chance you'll save money. Before
anything gets torn out or installed, you should spend time consulting with contractors and getting estimates. Look at the work they've done to see if they would be a good fit. Most importantly, don't be afraid to ask a lot of questions to make sure you're working with the right people and paying the right price.
2. Consider financing options. There are several options when financing a home improvement project and it is important to choose the right fit for you. Home equity loans and home equity lines of credit (HELOC) require you to borrow against the value of your home, with home equity loans offering a lump sum while home equity lines of credit provide you with a credit line you can borrow against. An unsecured home improvement loan can be used based on your creditworthiness and ability to pay, not tied to a piece of collateral.