While the COVID-19 pandemic has caused a lot of trauma, stress, and turmoil for many people in America and abroad, it’s also presented others with possibilities that would’ve never before been within reach. For example, with interest rates at record lows, more and more people are buying their first houses and becoming homeowners. Especially because of the opportunity to take advantage of such great interest rates, it’s possible to save thousands in interest over the course of your mortgage, meaning that you can stretch your budget a bit farther when it comes to the listings you’re looking at.
That being said, even with the opportunity to cut costs and increase your saving because of the impact of COVID-19 and quarantining, you may find yourself wanting a little extra money in order to make some necessary home improvements. After all, with the market as hot as it is right now in some cities, some homeowners are having to waive inspections in order to have their offers accepted. As a result, it’s much more likely that your new home will come with a few more home improvement projects than you may have initially expected. These sorts of projects will need to be financed, and after moving and paying a down payment and closing costs, you may need to look to external sources for a way to cover these expenses. Read on to learn about some of the different places you may want to explore as a way to fund these home improvement projects.
Look at local banks and credit unions first.
When it comes to finding a personal loan as a way to fund your home improvement projects, it can be tempting to look at online lending platforms or large banks first. However, many of those lenders may charge you more in interest rates than other loan originators. Finding a smaller local bank or a local credit union may actually be a better way to get a more competitive rate, especially if you can bring a pre-approval letter from a larger lender to a credit union in Grandville, MI, or wherever it is that you live. Not only will doing this help you get the best deal possible on a personal loan, but it’ll also allow you to support a local financial institution. That’s a win-win for investing in your neighborhood, both as a new homeowner and a member of the community.
Find contractors whose prices you can afford.
While getting a loan is certainly part of accomplishing the home renovation projects on your to-do list, it’s just as important to keep your prices in check by finding a contractor who offers quality service at an affordable price. Different contractors have different specialties, so it’s crucial to research a few different options in order to find the best deal in your area. Again, going local can be an ideal way to save some money without sacrificing quality or craftsmanship.
For example, a company like MLM Home Improvement specifically focuses on different kinds of external renovations. Whether you’re in need of some replacement windows or need your roofing repaired, MLM Home Improvement can get the job done well. That being said, businesses like MLM Home Improvement aren’t only focused on repair work. If you want to add to the curb appeal of your new home, a company such as MLM can be just as helpful when it comes to replacing your siding or your door. Adding a pop of color with a bold new door or a unique window inlay can really add some personality to your new property, making exterior renovations as much about design as they are ensuring your gutters work properly. The same can be said for finding solid HVAC services in Livonia, MI, since a specialist provides you with value
Open a new line of credit.
If some of the work you’re looking to get done has more to do with cosmetic finishes or new appliances, opening a new line of credit can be a great way to handle interior renovations. Even getting a new credit card with a limit of about $5,000 can be an excellent way to finance paint or a new appliance or two. Whether you’re updating your kitchen with a new stainless steel dishwasher and faucet or buying self-adhering wallpaper, most local hardware and home decor stores will accept credit cards. This means if you’re planning on paying for labor as well, you may want to split the costs of your project across your credit card and a smaller personal loan. Doing so will allow you to leverage all of the assets available to you in order to make your home renovation project more manageable.
Don’t rule out talking to family members.
While you may not be able to borrow money from family members to help with your down payment if it isn’t truly a gift, that doesn’t mean that you can’t speak to a parent or grandparent about loaning you some money for renovations. It can be awkward to ask a family member for money; however, if you establish a few ground rules, it’s possible to accept a loan from a family member without it causing bigger problems later down the line. While many people may not have family members who are willing to loan them money, it never hurts to ask, especially if you have a family member who’s retired and may have extra income from their 401k to share with you.
As you can see, there are a few different ways to afford home renovation projects on a new property. Whether it’s choosing a local credit union to get the best value on your loan or finding a qualified contractor with competitive rates and years of experience who can get the job done on-time and under budget, there are numerous ways to lower your costs on the work that needs to be done on your house. Even if you need to borrow money from a family member or open a new line of credit, there’s nothing to be ashamed of about needing a little extra help crafting the home of your dreams. When all of the hard work is done, you won’t regret the price you’ve paid to truly make your new home yours.