From the timeline to the scope of work, choosing a good contractor, and your budget, there are several things to consider when planning a home renovation project. And if your guess is as good as anyone’s budget is by far among the most crucial factors to prioritize.
Having a clear budget in mind before starting any work can help to ensure that the project stays on track and within your means. And for what it’s worth, nothing can be more intimidating than having to live in a hotel, a relative’s, or a friend’s place longer than expected, just because you didn’t get your finances right.
With this in mind, read on for four ways to budget more accurately for your home renovation budget.
1. Know Your Priorities:
Before you start budgeting, it’s important to know what your priorities are for the renovation. What are the must-haves and what are the nice-to-haves?
Once you have a clear idea of your priorities, you can start allocating your budget accordingly. If your current financial situation won’t allow an overhaul, it’s easy to know which aspects of the renovation can wait.
2. Use an Online Cost Calculator:
Setting a realistic budget for your home remodel also requires you to bring the various costs into perspective. These may include costs for materials, tools, labor, equipment, and so forth.
Having a rough idea of the entire project costs will also come in handy in case you need to get a home improvement loan. To accurately estimate the costs of your upcoming remodel, all you may need is to find a home renovation calculator online. Enter some information and do the hard work for you.
3. Get Quotes from Different Contractors:
Once you know what you want and have a clue about how much money your project will cost, go ahead and get quotes from different contractors. This will help you compare prices and get the best value for your money.
Get at least three or four bids and meet the home remodel contractors in person if you can before making your final decision. Make sure you understand what is included in each quote, and ask questions if anything is unclear. That way, it’s easy to make your budget more accurate and avoid the surprise of being hit with hidden costs.
4. Consider Financing Options:
Accurate budgeting also means taking into account the source of funds. If you’re not able to pay for your entire renovation upfront, you may need to consider financing options.
There are a few different ways to finance a home improvement project, including options that allow you to pay off the entire cost of the project right away. You will in most cases have to pay a considerable amount of interest.
Some common home renovation financing options you can look into include:
- Home equity
With home equity loans, you can borrow money to put towards your renovation. You will have to pay back a percentage of the original loan plus interest.
- Home equity line of credit
This line of credit gives you the option of applying for funds, but you’ll have to pay the balance back, plus interest.
- Personal loan
With personal loans, you might need to get a cosigner who has the ability to fully pay off the loan in case you’re unable to do so. Some personal loans, however, are offered based on your income, place of work, and credit score. Be sure to shop around for personal loans that vary from one provider to the other.
- VA loan
With VA loans, you can borrow money through the Department of Veteran Affairs. These are given to retired servicemen and women in uniform who served their country in the military.
Budgeting for a home renovation doesn’t have to make you scratch your head to the last hair strand. With the tips above, you can create a more accurate budget for your upcoming renovation without much strain or stress.