If you are, then a renovation loan might be right for you.
For buyers looking to buy a home with the right bones and shape it into their perfect vision, you may consider a renovation loan to update the property if you're confident that the project will either reduce your long-term costs or increase the value of the property. Remember, the goal is to implement a home renovation project that increases your property's value by a greater amount than what you spend on renovations. Certain improvements to your basement, kitchen, or bathroom, for example, can increase the value of your home substantially.
For sellers looking to make some improvements that will make their house stand out in the market, attic insulation, basements, bathrooms and front door remodels top the list for valuable repairs. Other projects to consider are projects that will have a long-term value such as roof repairs, new siding and updated windows to keep your home weatherproof and energy-efficient. However, before jumping into these projects, you may consider checking your equity before you take on a renovation loan and get to know guidelines and conditions. Premier Mortgage Resources (PMR) can help you explore which program options will work best for you.
Whether you are a buyer or a seller, the one mistake you won't want to make is investing too much in your remodel. No matter how much money you pour into projects, your home's value will almost always be compared to similar properties in your neighborhood. For example, if similar homes in your neighborhood are selling for $500,000, don't invest a million dollars into your projects. Your property might remain a similar value as those other homes regardless of the amount you've spent.
Lastly, remember to be thorough and to take your time. Don't rush to renovate. Talk to our loan officers at PMR. They can help you understand your options and find the right renovation loan for your situation.
If you are interested in learning more, please visit https://www.pmrloans.com/renovation-loans/.