The popularity of home improvement and home rehab shows has many homeowners contemplating making over their own homes. No one talks about home equity loans or how they get the financing, but the funds are somehow there to accomplish the goals. I guess it’s the magic of TV. Shows such as Love It or List It, Flip or Flop, Fixer Upper, Property Brothers, and others give viewers a peek at the dramatic home transformations that a carefully-planned remodel can accomplish. There’s nothing like a good home renovation show to spur your imagination and help you envision the renovation of your own home. After all, many of us sit on the edge of our seat waiting to see the end result of those dreamy TV home makeovers, don’t we? We’re living in an era of home improvement as entertainment, so obviously, the interest is there. Now, how do you accomplish that makeover for your house?
How to achieve a home makeover as you see on TV
So, you’re not on a home remodel show and you don’t have much in your savings account. You may be wondering how you can enjoy the outcome of your own home renovation. A home equity loan from your credit union can be a great place to start. You’ll need a budget and a loan to accomplish all of that work. Benchmark Federal Credit Union offers our members competitive home equity loan rates, as well as no closing costs and local loan decision making. It all starts with advance planning and borrowing the money you need for your home remodel. To be eligible for a home equity loan, you do need to have equity built in your home, so keep this in mind. If you’re dreaming of a home remodel, chances are you’ve been in your home for a while and have some equity built. That’s your first step.
3 Steps to Planning a Home Renovation
1 Speak to your credit union representative
They will help you to determine the amount of equity in your home and how much you are eligible to borrow. Different lenders may allow you to borrow a different percentage of equity. Your credit score will also have an impact on the amount of loan as well as the home equity loan interest rate for which you qualify.
2 Develop an idea of what you’d like to achieve with home remodel
Wondering where to start? Well, you may already be watching those home remodel shows we mentioned above and have some definite ideas on what you’d like to accomplish. Maybe you’d like to enlarge and redo your master bedroom and add an ensuite. Perhaps your goal is to open up your kitchen into your living space for a more open-air feel. Need more ideas, check out a few home remodel websites for photos and inspiration. When you begin to talk to contractors, you will want to provide as much detail as possible about the scale of the project.
3 Interview contractors and subcontractors
Depending on the scope of your project, you may want to start with a designer to help plan a remodel. Although they make the process look simple and quick on TV, that’s not the reality of it. You’ll want to hire experienced professionals to help you achieve your remodeling goals. They will assess your house, speak to you about your objectives, run the numbers and tell you what is actually feasible within your budget. You might need a reality check with fitting your goals to your actual budget. This is often the case.
Applying for a home equity loan
A home equity loan from your credit union can help you to achieve your remodel target and fall in love with your home all over again. Benchmark Federal Credit Union offers flexible repayment terms customized to your situation, in addition to no closing costs. Speak to a credit union representative today or learn more about home equity loans on our blog 4 Home Equity Loan Questions Answered.