Getting ready to remodel

If you’re thinking about buying a home that needs some work, a 203(k) loan can be a great option. With a 203(k) home loan, once you close on your property purchase, you’ll be ready to renovate! The National Association of the Remodeling Industry has these tips designed to make your project a successful one:

1. Do your research. Doing your research can help you figure out what’s involved in fixing up your property and how much it will cost. You’ll also want to investigate if your improvements make sense for the neighborhood and that you aren’t over-improving.
2. Set a budget. Deciding on a realistic budget and arranging finances to support your project are essential. This number needs to include everything—the project, products, contingencies, etc. Share your budget with the professionals handling your remodeling work.
3. Select reputable professionals. Before hiring someone to work on your home, ask friends, family and neighbors for referrals. Spend some time investigating each person’s reputation online. Ask about licensing, certifications, memberships in trade associations and additional training. Look for examples of press coverage or involvement in industry presentations or events. Check online reviews and social media to see how they’ve interacted with past clients and peers. Don’t take their word for it! Check the information given to you such as references, license numbers, insurance information and certifications by calling to verify.
4. Review contracts word-by-word. A remodeling contract protects you and your remodeler. Homeowners should review this document carefully. Ask about any terms you don’t understand. Pay attention to details about change orders, payment, additional fees, timeline and responsibilities. If it’s not in the contract, it doesn’t exist!