Funding your Future: 3 ways to afford a renovation

Now that we're heading into spring, and with summer not far behind, we are entering the most popular time of year for home renovations. It might seem like a daunting task, but with a few tips and tricks, David Sant from Cyprus Credit Union says they can make it a relatively painless process.

Come up with a Budget
A budget is going to dictate everything that comes along with a renovation project.
• First, you will need to do some research to find out how much on average your type of remodel costs.
• Second, you`ll need to figure out how much you can realistically spend.
• Third, you`ll need to price out to contractors and find how much they`ll charge you for the project.

Renovations cost money, and you need to be able to afford the project you take on. If the numbers aren't working with your current everyday budget, hit pause and wait until you have the funds saved.

Create a Schedule
Depending on the level of renovation, there is a good chance your home will be in some sort of chaos until the construction is done. After coming up with your design or a list of what you want to do, talk with contractors to estimate how long the project will take.

Be Prepared
The old saying "hope for the best, plan for the worst" is essential when it comes to planning a remodel. Be ready mentally, emotionally and financially for anything that might come up. Remember, when you start construction, issues you weren`t aware of may come up. When problems do come, stay calm and work out the issue with your contractor.

Mistakes to Avoid
• Being Cheap: It`s tempting to save a little money upfront, but chances are if you buy cheap you`ll have to replace it sooner, costing you more money.
• Ignoring alternatives: You might have your heart set on granite countertops and ignore another option that might be better and save you money.
• Talking to only one contractor: Make sure you do your research on your contractors, there might be someone out there who will give you a better deal.
• Doing too much: Don`t bite off more than you can chew. Take the renovation one step at a time.
• Not getting enough materials: Make sure you have enough to finish your build, it makes life easier.

If you are planning a renovation, a HELOC is a great way to pay for it. You can gain access to money as you need it but at a much lower interest rate as compared to traditional loans. For more information about HELOCs visit cypruscu.com.

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