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This Old House - Do-it-Yourself

Renovation Cash: How to Make Sure You are on Schedule

Written by Posted On Thursday, 28 December 2017 08:26

You have been planning your home’s renovation for the last few months. You have gotten the right contractors for the job, found a materials’ supplier, and even had a designer draw up the new changes you need to the home. Unfortunately, after carrying out the final budget, you find that you still need some extra cash to see the completion of the project. Financial challenges can frustrate you when renovating the home. When they do, what should you do? Should you postpone the project when work has already begun? No. This article will give you some useful tips on how to source for renovation cash and ensure that your project runs within the expected time frame.

Always Overestimate

When planning for your renovation, you must estimate the amount of money that is required for the project. This includes materials, hiring contractors and experts, and labor. When budgeting, always set the price higher than you expect. Do not under-budget as this will result in cash deficiencies which can cause significant delays in the process. There is no harm in setting aside more than what you need to cater for changes in material prices and other unforeseen events. It is better to make savings from the remodel than to end up with a negative balance and start looking for last minute options to finance the remaining part of the project.

Seek Payday Loans

Sometimes, the unforeseen happens, and you find that you are short of a few hundred or thousand dollars for your project. You need cash and need it fast. In this case, seeking out a bank loan may not work, considering that they can take days or even weeks to process. A payday loan in Arlington, TX is the next best option to save your project. Payday loans are short-term unsecured cash loans, and you only need to pay back with a small interest. You can get the loan in as little as 24 hours after submitting your application. If you find that you need to purchase extra tiles, paint, or even timber for your renovation and you have no cash, find a company that offers payday loans and get sorted.

Use Your Credit Card

You might be able to cover a small percentage of your renovation costs on your credit card in the form of cash advances. Alternatively, you can use the card to purchase materials and finishes for the project. However, when taking out cash advances, note that your credit card company may charge a small fee. Ensure that you inquire beforehand. One advantage of the credit card is that it is also readily available; therefore, you can use it to get yourself out of a financial fix during the project. You can also consider borrowing from your 401(k). Most programs allow you to borrow and pay back within five years or so.

Go for Contractor Financing

As a last resort, you can consider contractor financing for part of or the entire project. This is where the contractor helps to arrange for financing as they have connections with financing companies. This is an excellent option if you get stuck once the project has commenced. If you are unable to take a payday loan or use your credit card, this can be a quick fix to the problem. However, not that contractor financing is expensive as it involves the use of a middleman to access credit. You should only consider it as a last option if all else has failed.

Proper planning for your renovation project can help you conquer most of the financial challenges that are experienced during the process. However, if the problems come, you can utilize these options to ensure that your project runs on schedule as planned.

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Rachelle Wilber

Rachelle Wilber is a former real estate agent now turned freelance writer that specializes in home realty, mortgage, and building. She graduated from San Diego State University with her Bachelor's Degree in Journalism and Media Studies.

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