5 Tips for Success When Financing a Kitchen Renovation
If you want or need a kitchen renovation but lack the cash to pay for it up front, financing is a good alternative. Financing a big remodel project can be affordable while allowing you to protect the value of your home through proper maintenance and updating. But before you start your project on borrowed funds, follow these tips to ensure the best success and avoid financial surprises.
1. Make a Budget First
Before you find out how much you can borrow, find out how much you actually need. Most borrowers qualify for a higher amount than they ask for, but this can result in overspending. Having what feels like a blank check can easily cause you to take on more than you planned or more than you can actually handle.
Instead, meet with qualified contractors who specialize in kitchen remodeling to determine a realistic but flexible budget and a feasible project size before you seek out a loan. Then, only borrow what you need for this project.
2. Minimize Delays
When you finance a renovation project, you usually begin paying back borrowed money right away. Get the most value from that money, then, by minimizing the period between borrowing and enjoying the fruits of your labor. Have your project ready to go before you receive those funds. Choose materials that don’t come with long delays. And avoid surprising your contractor with unexpected changes.
3. Know Where to Splurge
One key facet of a good kitchen renovation is knowing where to spend more and where to spend less. When you’re financing the project, spending money in the right areas is even more important so you get the most for your investment.
For instance, good quality appliances appeal to many home buyers but splurging on expensive hardware may not be worth your money. And if you really want those gorgeous countertops, you might be able to save money by not moving the plumbing. Planning your splurges and compromises ensures you get enough to make you happy even if you can’t have everything you want.
4. Make Value-Based Changes
The purpose of a kitchen remodel is twofold. First, it should make the kitchen more appropriate for your own use. But it should also help protect the value of your home. Aging kitchens are a big drawback for home buyers, so updating this room maintains your financial investment. However, a renovation that is too personalized or is over the top for the neighborhood can also reduce the home’s sale potential.
The best way to boost the property’s value via a kitchen remodel is to consult with experienced kitchen contractors who know what people want and what brings the best value for your money.
5. Avoid Scope Creep
Scope creep occurs when a remodel starts out with one set of parameters but gradually, adjustments expand it in small but potentially costly ways. The scope of your renovation can creep outward if you alter decisions already made or if everyone isn’t on the same page about aspects of the project. It can also by spearheaded by a well-meaning contractor.
While some change is to be expected once you start a remodel — and is why you need a buffer in the budget — avoid allowing it to expand more than you can afford. Financed projects often have a firmer budget, so you may need to work more actively to prevent unwanted creep.
Want to know more about using your home renovation financing in the best way possible? Start by consulting with the kitchen remodeling pros at DesignFirst Builders. We will assess your current kitchen, your goals and needs, and your budget to find the best places to put your money. Call today to make an appointment.