Making big changes to your home can be expensive. Whether you are looking at an upgrade like a bathroom remodel or you need to repair your plumbing or roof, you are looking at spending a few thousand dollars at a minimum in most cases. Chances are good that you don't have a few thousand dollars just sitting around in your bank account, and if you do, it's probably earmarked for something else. Few of us just have the money at the ready when home repairs and upgrades come calling.
Thinking ahead can help you to have a plan in place for the unexpected. No matter the timeline, a few smart strategies can help you get the money you need. Here are a few things you can do to finance your home upgrades and repairs:
Find the Best Deals and Values
The first place to start with any home repair or upgrade is to find the provider who is offering the best deal for the best quality product or service. You don't want to just focus on a low price. You could be sacrificing quality for that lower price, and you would end up spending a lot more on repairs and replacement in the future.
Instead, you want to focus on a price that is fair for the product or service you are getting. For example, if you are looking for the highest quality replacement windows New Orleans has to offer, GoBuildPro offers zero-percent financing and a lifetime guarantee. You'll get a fair price on windows without having to pay extra in financing, and you'll have the assurance of a long life span.
Build an Emergency Fund
Even with the best pricing, you may still not have enough if you haven't saved a bit of money. Not every provider offers financing, let alone financing with good terms. You need to have at least a small fund set aside in case of emergencies.
If you aren't good at saving, there are several things you can do to make it easier. Some people put aside their change after paying for something in cash. Others sign up for a program through their banks that automatically deducts a certain amount for a savings account or funnels reward payments into a savings account. Every little bit you can put aside helps. You'll be happy to have that money when disaster strikes.
Get a Home Equity Loan
If you have lived in your home for longer than a few years, you likely have a bit of equity built up that you can draw on for home repairs and upgrades. The longer you have lived in your home, the more equity you are likely to have. However, if the area where you live has seen a big real estate boom, your house may have shot up in value. The only way to know for sure is to get an appraisal.
The great benefit of a home equity loan is that once you're approved for it, it operates almost like a line of credit. You can draw on it as needed to fund repairs or upgrades, and you will pay a low interest rate in the process.
Stick to Your Maintenance
An ounce of prevention is worth a pound of cure, and that goes for home repairs also. If you are proactive and stick to your scheduled maintenance, you'll save a great deal of money down the road. It may be a pain to shell out $100 here and there for a chimney sweep or an HVAC inspection, but it's nothing compared to the thousands you may end up paying in repairs.
The money you save on repairs can also be put aside for savings for home upgrades. You can fund your dream kitchen or a new roof by just getting an annual roof inspection and other maintenance.
The high price of home repairs and upgrades can seem overwhelming, especially if you are living on a limited budget (the way most of us are). Yet these smart strategies can help you pay for just about any repair or upgrade that's needed. You just need to be a little proactive and be consistent.