Remodeling Tips for First Time Homeowners
Homes that need some TLC can be an affordable option for first time homeowners since they are discounted significantly and tend to sit on the market. If you’re considering a home that needs to be remodeled, knowing what you’re getting into can help the process go smoothly.
Buying a Fixer-Upper is a Slightly Different Process
Most traditional mortgages do not cover fixer-uppers. Instead, you’ll need a renovation loan to cover the cost of the home and improvements, such as a FHA 203(k).
Tips for Remodeling
When you buy a fixer-upper, make sure the remodel includes items to increase the home’s value. Also, focus on having a good finish. This will go a long way in creating equity in the home.
Working With a Contractor
Here are some tips for working with a contractor:
- Request bids from multiple contractors
- Check their insurance to protect yourself in case of injury
- Ask for references and reviews
- Get a contract in writing that includes all fees
Doing the Work Yourself
If you’d rather do the work yourself, here are some things to keep in mind:
- Carefully budget your projects
- Prioritize the major projects (roof, HVAC, foundation, etc.)
- Plant your landscape early so it has time to grow
- Choose functionality over upgrades to stay in budget
Lenders are Invested
Lenders are invested in your project. Thus, renovation loans require additional consultations, inspections, and appraisals. Some lenders may even require approval by a HUD consultant to keep the project on-time, on-budget, and up to standards.
Find a Renovation Loan for First Time Homeowners
At Mortgage Solutions Financial our team knows what first time homeowners need with a renovation loan. Contact us today to discuss what options are available to help you bring your vision to life.