One of the best investment is to invest in your home and add value to it. Home improvement or home remodeling has no end. Homeowner of every home has a wishlist of home improvement tasks. Whether you do it yourself or hire remodeling professionals, success of a remodeling project depends on preparation and plan. Image Source: http://www.Cahabarivertrading.com
The following are the most important tips for successful home remodel.
Set your goals- Home improvement with a purpose of attracting home buyers is different from routine home improvement. If you know your goal for home improvement project and you know how to get their, your home remodel is going to be a success.
Plan accordingly- The first step of your home improvement project would be to make an effective home improvement plan. Your plan will help you meet the goal, at the end of the project.
List the Tasks- Write down all the tasks you think you would need them done. If you have too many tasks in the list, It is better not to do everything at once, instead prioritize.
Set your budget-Decide how much you can realistically spend. To keep the home remodeling budget affordable, Decide what must be done. Eliminate unnecessary tasks and this is how you can make sure your home remodeling project is focused and is within budget.
Get Finance- if you will need. Whether you will use money you have set aside or money from a home improvement loan, you’ll need to consider the complete project and add a contingency of at least 10 percent of your total, which is a cushion for unexpected or unplanned expenses. Financing should be arranged in advance if you need it. successful cash flow management is essential to make the contract successful.
Decide whether to Use mortgage broker or use Bank for home improvement loan- There are many reasons why you should choose mortgage broker for a home loan or home remodeling loans. Mortgage brokers who are also lender are the best for you. They can offer more than 200 different loan programs. They can find you a loan that fits your situation — even if you have a bad credit history. Ask yourself who can give you a better deal and who you would be more comfortable with.
Decide whether Hire Contractors for home remodeling or do it yourself-‘DIY vs home improvement professionals’ is an old debate. If you have the knowledge, skills and you have time in the world, you won’t be able to do the work as good as professional. So it is always better to hire the professionals. They can work more efficiently than if you were to do it yourself.What FHA says about borrower wants to do any work “a borrower doing their own work can only be paid for the cost of the materials. Monies saved can be allocated to cost overruns or additional improvements”
Hire quality and reputed contractors who are local- Quality contractors aren’t necessarily available right away. It is always good to start doing research and contractor selection process in advance. Hire local contractors. For example, if you are planning to replace rotten wood and your home is located in Birmingham, then replace rotten wood in Birmingham would be best choice for you.
Know home improvement specialists in your area. Local contractors would be the most affordable choice for you as they won’t have to commute from distance.
Have your preferred materials- Order your items, have all the needed items on hand and inspect them for faults. Make sure when you are purchasing your home improvement supplies and tools that they are what you want and not what the professional contractor or sales clerk is pushing you to buy.
Keep track of the progress of the project- Keeping track is as important as setting goals. We keep track of the progress to stay on track.
Set the timeline for the project- Renovations or remodeling takes a long time. As a home owner before you get started on your own renovations, it is always good to set a timeline for your project. Timeline will help you keep track of the progress of your project and also help your contractor accomplish the tasks on time.
Schedule the work- If the project involves different types of work you can schedule things so only one contractor work in your home.
The above 12 tips, if followed can make any home remodel a success. The most important is your goal, plan and implementation.
Manual Tobias is the original writer of this article.
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Mortgage thumb rules are ready rules which are learned from experience and are based on commonsense applied in the field of mortgage home loan. The fact is most of us do not have time to carry out study in depth about mortgage or home loan. But if we follow the mortgage thumb rules there are little chance that we would do wrong. The following are some of the most popular mortgage thumb rules.
Debt to Income Ratio: You should not put more than 36 percent of your income toward debts (mortgage payments, car payments and credit card payments), 31 percent toward taxes and then have 33 percent for everything else (including savings or investments).
Affordability: You should buy a house that costs no more than two and a half to three times your annual income. For example, if you earn $100,000 per year, you shouldn’t spend more than $250,000-$300,000 on a home.
Emergency fund: Your emergency fund or saving in cushion safety account should equal six months’ worth of household expenses. A larger rainy-day fund can cover a lengthier period. Saving an emergency fund is first priority; Paying off high-interest debt is second priority; and investing should be last.
Retirement Savings: You will need to replace your pre-retirement income by 75-80%. That means, if you make $80,000 the year before you retire, you should expect to have a little over $60,000 in income during retirement.
When to refinance: In the Old Days, the rule of thumb was to consider refinancing your home when interest rates dropped by 2%. But today, Closing costs are low, and in this situation it often makes sense to refinance your home when interest rates have dropped by 1% from your current mortgage.
Tax: When it comes to taxes, don’t try to cheat. Pay what you owe. Claim all the deductions you deserve, but don’t try to stretch things. You can borrow from private sources to immediately pay your liability in full. If you pay tax liability by installment, It is recommended that you make the largest monthly payment possible because your tax liability will continue to accrue interest and applicable penalties until paid in full.