Home Renovation: Top Things To Know

January 6, 2022
Home1st Lending
203K Loan, Home Improvement, Home Maintenance, Renovations

Considering a home renovation? Hats off to you! Home renovations are no easy feat—much like a marathon, there will be a lot of preparation before the renovations even begin and you’ll likely run into some obstacles along the way, but once you hit that finish line, you’ll be overcome with joy.

To help get you started on the right path, we’ve put together a list of the top things to know before starting your home renovation journey.

Your “Why”

While it may seem like an obvious answer, take the time to sit back and think about the reasons why you want to renovate. Sure, it’s easy to say, “This kitchen is completely outdated and needs a facelift,” but what are the benefits of renovating? If you just want a quick fix, there’s plenty of DIY videos and social media accounts out there to help you make those little home tweaks (just make sure you do your research). But, if you’re going to spend the money on a renovation, you need to be able to justify your decision— on top of it being money out of your pocket, it’s also your time, your happiness and comfort in your house, your potential future investment opportunity, etc. The major “why” questions you should be considering: 1) Will this renovation increase my home value? 2) Will this renovation improve the functionality of my home?

Your Financing Options

If money is no object or you’re doing a mini renovation, you always have the option to pay-out-of-pocket. Realistically speaking though, you’re most likely going to want to look into financing options. When it comes to financing a home renovation, you do have a few loan options available to you. If you’re a current homeowner and have enough equity built up in your home, you may want to consider a home refinance— one of the top renovations that is done with this kind of home loan is the addition of a pool, though you’re not limited to just that. Your other top options? The Fannie Mae HomeStyle® renovation loan and the FHA 203(k) renovation loan. What’s great about these loan programs? Whether you’re buying a home or refinancing your current home, you can often build these loans into your current mortgage. Need help deciding which option is best for you? Be sure to get with a licensed loan expert to determine the best fit for your wants and needs.

Your On-Hand Expert(s)

Home renovations are not a one-person job. If you’re going to put in all this time and energy into renovating your home, it’s best to do it right—this means having an expert, or rather several experts, by your side to help you through the process. While it may seem easiest to just turn and Google everything you think you may need to know to get started, you’re instead going to want to find someone experienced to consult with who can help you through the initial goal planning stages as well as through the rest of your journey.