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Should You Do a Major Home Renovation?

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One crucial decision most homebuyers make is to decide what loan type best suits their needs. If you can only afford a small down payment, then you can consider an FHA loan or even a no down payment loan if you are qualified. Otherwise, there are other mortgages perfect for homebuyers with high credit scores and can afford a 20% down payment.

After a successful home purchase, there will come a time when you will think about doing a home renovation. It can be tricky to decide to pursue a major home renovation or not. Then answering the following questions can help.

What is my goal for doing a major renovation?

According to a national study, homeowners have varying reasons to renovate. Some do this to deal with current home damages. Others renovate to ensure their home is suitable for recent lifestyle changes. Some homeowners did a major home remodeling in hopes of selling their house for a better price. But 57% of respondents claim they decided to renovate after having the financial means to customize their house according to their taste.

Before planning your project, ask yourself what is your main goal for renovating. Is it to fix a current problem or to improve your home for future use? Or maybe you have plans to sell it soon? Knowing your main objective for renovating will help you determine the best projects that will help you reach your home renovation goals.

How much can I afford and am I willing to spend?

contractors pouring paintThere is a big difference between the amount you are willing to spend and the amount you can realistically afford. For some homeowners, they are only comfortable doing renovations they can pay for in cash. For others, they are willing to acquire additional funding just to be able to attain their objectives.

When it comes to home renovations, you either need to hire some contractors or DIY everything. This will affect your budget and renovation time frame, among other things. Research on how much money you will need to complete your desired home renovation project. Then, do a financial check and see if you can afford to pay for the project in cash or not.

Should I do a major home renovation or buy a new house instead?

If your desired home improvement project is costly, then the idea of buying a house that matches your needs will cross your mind. Weighing the pros and cons of both options will help you decide which one makes better sense. If you renovate, there is no need to give up on things you have come to familiarize yourself with, such as your location, neighbors, and the house you’ve built many memories on. But if you stay, you will need to do things outside of your comfort zone like hiring a contractor, securing permits, and cost concerns.

Buying a new house means doing a home purchase all over again and moving all your stuff out to your new home. There are major adjustments to consider as well as the considerably large investment to make. But if you can find a new home that fits your needs and the bill fits your budget, then all the trouble might just be worth it.

Doing a home makeover is a complicated task. You don’t want to end up starting a project only to have regrets afterward. If you are not sure whether a major home renovation is for you, make sure to answer these three crucial questions first.

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