Financing Home Improvements

Home Financing

 Overview:  If you are trying to sell your house right now you will find that the market is in favor of home buyers rather than home sellers. To make your home more attractive to a potential buyer you should consider some upgrades or making some home improvements to make it more competitive.

Home improvements cannot only help you sell your home but depending upon the upgrades they may actually help you get a higher selling price for your home. When considering home improvement upgrade projects focus on the kitchen and bathrooms. They are big focal points for potential buyers. Unfortunately these types of upgrades are expensive. Depending on your situation, kitchen or bathroom upgrades can cost between $5,000 and $10,000 dollars. Not small potatoes.  

The question a lot of home sellers have is how to go about financing home improvement projects. Don’t despair; money may be available if you don’t have the cash on hand. You just have to look in the right places. Keep in mind that whatever the cost of a reasonable upgrade, you will probably get it back from the sale price.

There are several ways to go about financing home improvement projects.  You can borrow the money needed for home improvements, but some methods of financing a big home improvement project are much easier than others. Here are some of the more common ways of paying for home upgrades in order from easiest to most difficult to attain. The easiest way for financing home improvement projects is from money on hand, or cash reserve. Not a lot of people have thousands of dollars hanging around but many people do have items they can sell to raise money. Such as old tools, a second or third car, or that boat that seems to always need something. Go through the garage, basement, or attic and take inventory of items you no longer need and sell them.  It’s a good way to do a house cleaning and get rid of things you no longer need before moving rather than moving them into your new home.

Home improvement store credit cards are another way for financing home improvement projects. Most home improvement centers offer credit lines up to ten thousand dollars or less. Getting a credit card from a home improvement store is usually not very difficult even if you have questionable credit. However, be aware of high interest rates and high fees. To get a home improvement store credit card you usually just have to fill out a single form at the store.

An equity loan on your home is very common for financing a home improvement project. Consider taking out a home equity line of credit, a home equity loan or even a second mortgage to meet your needs. This type of financing may be or may not be more difficult than a credit card depending upon the equity in your home. To get a home equity loan the bank or mortgage company will want detailed improvement plans, quotes from one or several contractors, and proof of steady income. Different banks offer different types of home improvement loans and some may be more willing to work with you than others so you may have to shop around. Keep in mind that if you are determined you will find a source of money and upgrades will put you in a better position with the competition for selling your home.

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