Every home has a room that could use a makeover. That’s daunting enough, but full-scale renovations can be positively overwhelming. The good news is, if you’re faced with a renovation project there are some easy ways to build on a renovation budget and love the results.
In This Article
Sticking to Your Renovation Budget: When in Doubt, Plan It Out
Planning is probably the single most important way to keep costs down. Typically, when renovations break the bank, it’s because there was no plan. To avoid changing plans mid-project, spend time up front creating a clear, realistic picture of what you’re looking to accomplish with your renovation. If you plan carefully, you shouldn’t run into unexpected expenses when remodeling.
Sticking to Your Renovation Budget: Pick the Right People
When it comes to home renovation, you have to spend money to save money. This seems counterintuitive—why wouldn’t you simply pick the contractor who can complete the job at the lowest price? The simple answer is that quality matters. Lots of people will advertise to get your business, but they may not be right for the job. That’s why it is important to use word-of-mouth references and reviews from sites like HomeAdvisor to find a contractor who can accomplish your goals on your terms.
Don’t Rush the Bidding Process
Renovation experts agree: you need to collect at least three bids for your project before choosing one. Patience pays off here. Bidding out the contract could help you find the support you need, and at the very least could allow you to leverage your bids against one another to bring costs down, if you already have a contractor in mind.
Sticking to Your Renovation Budget: Over-communicate
You’ll probably work with an architect in addition to contractors, but their roles differ significantly. Architects want to sell ideas — their job is to create, and your job is to pay for that creation. That’s why it’s important to consistently talk to your architect and contractor about your budget constraints. This will keep your architect from suggesting a 10-foot waterfall in the kitchen, and will also help your contractor as he or she purchases supplies for the project.
Hire a Reputation, Not a Result
Reputation is the gold standard in the home construction business. Since hiring a contractor without the right reviews can lead to not-so-great results (see above), you’re best off paying extra for someone who you know can deliver. Unfortunately, it’s not uncommon for a residential contractor to begin a project without finishing it. If you’ve hired someone with great reviews, or whose work you’ve seen before, you’re much more likely to end up the envy of your friends instead of getting stuck with a never-ending project.
Renovations are no small undertaking and should be handled responsibly. Once you create a budget, take steps to stick to it. Ultimately, that’s how dream homes are made.
Eligibility for a home equity loan or HELOC up to the maximum amount shown depends on the information provided in the home equity application. Depending on the lender, loans above $250,000 may require an in-home appraisal and title insurance. Depending on the lender, HELOC borrowers must take an initial draw of $50,000 at closing; subsequent HELOC draws are prohibited during the first 90 days following closing; after the first 90 days following closing, subsequent HELOC draws must be $1,000, or more, except in Texas, where the minimum subsequent draw amount is $4,000.
The amount of time it takes to get funds varies. It is measured from the time the lender receives all documents requested from the applicant and depends on the time it takes to verify information provided in the application. The time period calculation to get funds is based on the first 4 months of 2023 loan fundings, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period.
For Texas home equity products through Prosper, funds cannot be used to pay (in part or in full) non-homestead debt at account opening.
Depending on the lender, qualified home equity applicants may borrow up to 80% – 95% of their primary home’s value and up to 80% – 90% of the value of a second home. In Texas, qualified applicants may borrow up to 80% of their home’s value. HELoan applicants may borrow up to 85% of the value of an investment property (not available for HELOCs).
Home equity products through Prosper may not be available in all states.
All home equity products are underwritten and issued by Prosper’s Lending Partners. Please see your agreement for details.
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