The Secret to Financing Your Kitchen Renovation

Man renovating kitchen

When it comes to home renovation, even the most frugal people can get too excited about choosing the right fixtures in their project. However, letting yourself get caught up would only shoot up the cost for your project.

Almost all home improvement projects often cost more than people expect it to be. That’s why figuring out your budget can be tricky. But how do you know if your home renovation project is worth the investment? If you are not sure about giving your kitchen a fresh look before selling it, you are not alone. Seventy-nine per cent of home sellers make at least one home improvement before they sell their property. But figuring out how much the entire costs will be is difficult. You need to consider several factors before you can even come up with a certain amount.

Cutting corners for your home renovation

Creating a budget for a kitchen renovation is the most challenging of all home improvement projects. Aside from the counters and appliances, you also need to worry about the lighting and flooring. If you’re only planning to make your place look better, then it will only cost you a few cosmetic fixes to update its design. But if you’re planning to do some major overhauls, then it’s best to save up money for it.

One way to save up is to focus on materials. Cheaping out on labour won’t do you any good as you may either get unfinished work or sloppy work. Instead, get less expensive materials for the project. It will still give you an attractive look but at a more affordable price. One way to get cheap materials is by looking at the prices online. However, you need to be cautious about it as there can be a few warranty problems. That’s why experts highly recommend getting your supplies from trusted brands. Ask the contractors about the exact specifics of the materials needed so that you can guarantee that you are buying the right set of materials.

Sources of funds

Piggy bank, calculator and coins

Once you’ve already finalized the renovation plans, the next step is to figure out how you’ll pay for it. Determining the cost of renovations will give you an idea on how to pay for the entire project.

One of the most common and practical ways to fund your project is by using your reserve funds. However, this fund option is most feasible on smaller projects such as buying plastering and drylining tools for the project. You need to look for other means to pay the project if you’re planning to revamp your entire kitchen.

Applying for a loan is another option. You can tap into FHA or Fannie Mae HomeStyle Renovation to fund your project. You can check with the mortgage provider to see if you’re eligible for it.

Although renovations have the potential to increase the value of your home, you shouldn’t expect to get back the money that you have spent at full costs. Regardless of your reason, it’s crucial that you stick with your funds before starting your project. You can begin by speaking with your financial adviser to determine the right amount that you should spend on your home improvement project.