The common question on most homeowner’s minds is; should I “Relocate” or “Renovate” my hoary home? The query is reasonable since some buildings require a renovation budget that is close to or even higher than the cost of building a new one. So, if you are among these property owners, you need to read this guide.
Nonetheless, the choice becomes even hard when used to the building and does not feel like moving. Many other reasons can prompt you to go for renovation regardless of the cost. For instance, when your home’s proximity to social amenities and other services is excellent, it will be easier to cling on. In a nutshell, you should renovate your home only when:
- It adds a significant value to your house
- Improves your standard of living
- You want to add more rooms for other purposes
Nowadays, even the old buildings stand a chance of surviving a few more decades, thanks to technology advancement. Remodelling is more popular than before. Renovations allow you to improve your home’s lifespan without moving to another home.
Nevertheless, the biggest problem is where to get the money for the renovations. If you are not capable of raising the money, you will have to get a loan. In regards to that, the following are the main factors to consider when applying for a home renovation loan.
Type of Renovation
You need to assess the type of renovation you want to carry on. There are several ways one can remodel their homes to achieve the final appearance. It could be remodelling the roof, bathroom, outdoor spaces, or even enlarging the living room space. Considering the renovation type gives you a rough idea of the budget, you need to complete the project. For instance, doing bathroom renovations needs less money compared to remodelling the roof. Therefore, this is meant to help you pre-assess the kind of resources you require. If the remodelling needs less money, you do not have to go for a loan.
Choose a Good Lender
After assessing your needs in terms of money and resources needed to complete the project, you need to choose a suitable lender. There are many lenders, but not all are the same. You have to choose the one that has better service. A suitable lender is the one that gives you the amount and time you need to complete your project and start repaying. Choose a lender with better rates and excellent customer service.
Interest Rates
After borrowing the money for your home renovations planning, you need to return it with a particular interest. Therefore, you have to check the interest rates of the lender before taking a home renovation loan. Try to compare the interest rates between different lenders before making the final decision.
Repayment period
A right home renovation loan should have a small interest rate and a favourable repayment period. A suitable lender gives the homeowner a grace period so that they complete the projects.
It is quite stressing when a lender starts to bother you even before completing the project. Also, you need to know the length of the period you will pay the loan. Therefore, check the repayment period before applying for the loan.