(ARA) - With home
prices and interest rates still low across the country, and inventories high,
it's a great time to be in the market for a fixer-upper. By buying a house that
needs some work, you can achieve your dream home for less than you would
probably pay for a move-in-ready abode.
To ensure you're making the most of your investment, however, it pays to take a look at your credit before you buy and begin your remodel. You'll not only need credit to cover the purchase price of the house, but you'll need it for renovation expenses as well.
The first step you should take in your bid to buy a fixer-upper is to check your credit report and score. Understanding your credit will help you know whether or not you can afford to buy a house that needs work and if you'll be able to pay for the needed renovations.
To ensure you're making the most of your investment, however, it pays to take a look at your credit before you buy and begin your remodel. You'll not only need credit to cover the purchase price of the house, but you'll need it for renovation expenses as well.
The first step you should take in your bid to buy a fixer-upper is to check your credit report and score. Understanding your credit will help you know whether or not you can afford to buy a house that needs work and if you'll be able to pay for the needed renovations.
You should also carefully research what your options are for financing your remodel. Learn what your options are, from traditional fixed mortgages to home equity lines of credit, and decide before you buy which type of financing will be best for you. Getting a handle on your financing before you buy can help ensure you stay on budget when you're in the middle of renovations.
If you're buying a
house that's in basically good condition but just looks dated, you'll have to
make some decisions about where to invest your money. Focus on improvements
that will not only look good, but will also enhance the value of your home.
Once you've signed all the paperwork and the house is yours, it's time to get to work. If you're handy, you may be able to save money by doing some of the renovation work yourself. Projects like painting, adding crown molding and even putting down new flooring are well within the skills of most do-it-yourselfers. More complex projects like drywall, plumbing or electrical work may be best left to professionals.
The excitement of
remodeling a house into your dream home can make it easy to get carried away on
spending. Keep in mind that remodeling estimates are just that - an estimate.
The final tab is rarely exactly what your contractor predicted it would be.
Build in at least 10 percent extra to cover emergency overruns, and avoid
making any unnecessary changes to the plans while the project is underway.
-Courtesy of ARA Content-
-Courtesy of ARA Content-
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