New American Funding Blog

Financing Your Remodeling Project: Part 2

By Shantell Lorraine Nicole Russell   |  August 27, 2015

Remodeling costs become more manageable if you do some yourself. Home improvement is a great way to increase the value of your house and cater your property to the needs of you and your family. Knowing how to finance renovation and remodeling projects is one of the most critical steps of the process. 

Know how to save 
When financing a renovation, ensuring that you work within your budget requires you to find different ways to save money. According to Bankrate, creating the perfect kitchen or finding the best floors for your living room can really add up. Just by adjusting your remodeling technique, you can wind up saving quite the handsome sum of money. 

Consider purchasing appliances online or find a friend who recently built a home or renovated and ask if he or she has any extra supplies leftover. Acquiring necessary materials online or from a friend can decrease the total cost of your project and cut down your need for alternative financing options. 

In addition, do not be afraid to bargain with a vendor. For example, if you need to purchase a ton of tile for your new bathroom, ask about a volume discount. 

"If you are friendly and considerate, oftentimes you can get a small discount of up to 10 percent," said Dan Fritschen, author of "Remodel or Move? Make the Right Decisions."

Don't be afraid to get your hands dirty 
Doing some of the renovating yourself can also save you a great deal of money. Demolition and painting can often be completed by a less-experienced individual. Also think about asking friends and family to help out - especially if they have experience with construction, electric work or plumbing. 

Always ensure you are completely confident in yourself and your helpers' skills before deciding to do some of the renovation work on your own. Some mistakes may wind up being especially costly to fix. 

Find incentive programs 
Going green might actually save you some green in the long run. Renovating your home with energy-efficient appliance or features can sometimes be rewarding. According to Fox Business, making your home more eco-friendly can land you tax credit. You can earn as much as $1,500 in tax credits by investing in Energy Star appliances. 

You can be awarded even more by incorporating solar-energy systems or other large-scale environmental improvements to your home. 

Home renovations are a great way to pump up your living space. Properly prepare and understand how you can acquire financing for your dream home. 

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