- Start at the Beginning: Write down what you do not like and what you want to change about your house. Remember you do not have to have all the answers like design, color selections, details. Identify the problem. The solution will ensure that you will be happy with your project.
- Establish your Budget. There is a big difference between wants and needs. Be objective. Determine what you must change, what you must have and what you can live without, or what you can do at a later time. This part may be the least fun of all, but keep in mind that it is one of the most important parts of the process. Everyone is different in how they go about doing this task. Nevertheless, one suggestion is to find out what the other homes in your neighborhood are selling for. The difference between the current selling price for these homes and the price you paid for your house is a good indicator of how much you could prudently spend on the project and get your money back if you had to move within the next few years. This becomes less important if you plan to stay where you are for more than four years.
- Find a Remodeling Contractor Professional Who can do More than just Build. Lots of people claim that they can manage a building project well. We all heard of the horror stories of great projects gone badly. Not all contractor professionals are equal in talent, quality, style, and management. Construction management it is definitely not rocket science but it is project management at its best with a few professional secrets. However, you want someone that has an eye for style, value and great details. Ask to see sample or pictures of Co. work. If they have a Co. web site take a look at what they have posted there. Ask to see samples or pictures of work. Speak with prior clients. Ask for references. Check the Co. web site and take a look at the pictures and articles posted there. Even the smallest renovation project can be very complex from the point of view of official inspections, official approvals and permits, craftsmen availability, vendors’ responsibility, materials quality and deliveries, making choices on color texture and overall management of the total project. Bringing all these details together in a timely manner to work efficiently and smooth, takes talent, style, expertise, determination and very good management.
- Get Answers to all the Questions up front. Always Make Contingencies. Always have a second set of selections to your primary selections and choices (colors, appliances, materials, etc) just in case that some of your initial selections are not available any longer. Once preliminary plans and budgets have been established, there is often a tendency by all involved to rush into the construction phase. This can actually slow down the process in the long run. If possible, take the time to specify and find out firm delivery dates on all items before you begin construction. This way you will find out in advance if there is a long lead-time on a particular item and a substitute can be incorporated into the design. We at Executive Design Group, Inc., take the time to plan and prepare for every step, so that the actual work can be done efficiently and on time.
- Enjoy and Have Fun. The whole idea is to improve your living space, lifestyle and quality of life. The way you go about it, makes all the difference in the world. Know what you want. Be clear about it. Always listen to the suggestions of your contractor professional, after all you hired him/her for their expertise. Work out a realistic budget with a reserve of 10-30% budget overruns that can happen due to change orders and then stick to it. If you come on budget it is great, and if not, well, at least you planed for it, you know about it and it is not an unexpected surprise. Find a talented professional contractor who can manage the project well and do the best quality your money can buy, take time up front to plan properly - and the rest will follow!
HOW ARE YOU GOING TO PAY FOR YOUR PROJECT?
CASH. Remember the old saying: Cash is King. During these times of diminishing real estate values, diminishing credit lines and painful difficulties dealing with bankers, this saying is more that true. If you have the money to pay for the project in full, we believe that it is the best way. Having a house that you own free and clear without any financial obligations to anyone, beside real estate taxes to your local government, is the best way, no matter what the economy or the times may bring your way in life. You will always have a roof over your family that does not have to be shared with a dishonest Bank or a Mortgage Company.
However, if this is not possible and you choose to remodel and upgrade your existing home, you may need to borrow some or all of the money needed for your renovation project. Depending on the value of your home and the terms of your current mortgage, you have several options to consider.
Some bank will appraise your home based on plans and specifications that Executive Design Group, Inc. will prepare for you, and possibly will give you a new loan to cover the amount of the renovation. This type of loan may be available as a new first mortgage or as a second mortgage.
HOME EQUITY. Using the EQUITY You Have in your Home: If the difference between the current value of your home and the balance remaining on your mortgage is enough to pay for your project, you may be able to obtain a home equity credit line or a second mortgage. These loans will provide you with the money you need to pay for your project. Many banks offer these loans with no closing costs. You may also consider refinancing the entire house. You can then take the extra money available from the new loan to pay for your renovation.
When You Do Not Have Enough Equity in your Home: If the current value of your home is not high enough to cover the costs of the renovation, then you may be able to obtain a loan for the renovation based on the value of your house after the work is complete. If you chose to take out a new first mortgage home improvement loan (a refinance), the bank will pay off your existing mortgage and distribute the money for the renovation during the project. You will then have one new loan for your home. If you get a second mortgage, your existing loan will remain, and you will have two payments to different lenders at the end of the project.
Which Loan is best for you? This depends on the interest rate and term of your existing mortgage. If you current loan has a high interest rate, then refinancing may be appropriate. You should consider how much the closing costs would be, the new interest rate, and the term of the loan. If your current loan has a low interest rate, you may be better off taking out a second mortgage and keeping your existing 1st mortgage.
If You Need Assistance: To determine the best type of loan for you, consider asking your banker for advice. You will find that banks specialize in different types of loans, and not every bank will be able to provide you with the right loan for your particular situation. You may need to talk to several lenders before you find the one that is right for you.
CASH. Remember the old saying: Cash is King. During these times of diminishing real estate values, diminishing credit lines and painful difficulties dealing with bankers, this saying is more that true. If you have the money to pay for the project in full, we believe that it is the best way. Having a house that you own free and clear without any financial obligations to anyone, beside real estate taxes to your local government, is the best way, no matter what the economy or the times may bring your way in life. You will always have a roof over your family that does not have to be shared with a dishonest Bank or a Mortgage Company.
However, if this is not possible and you choose to remodel and upgrade your existing home, you may need to borrow some or all of the money needed for your renovation project. Depending on the value of your home and the terms of your current mortgage, you have several options to consider.
Some bank will appraise your home based on plans and specifications that Executive Design Group, Inc. will prepare for you, and possibly will give you a new loan to cover the amount of the renovation. This type of loan may be available as a new first mortgage or as a second mortgage.
HOME EQUITY. Using the EQUITY You Have in your Home: If the difference between the current value of your home and the balance remaining on your mortgage is enough to pay for your project, you may be able to obtain a home equity credit line or a second mortgage. These loans will provide you with the money you need to pay for your project. Many banks offer these loans with no closing costs. You may also consider refinancing the entire house. You can then take the extra money available from the new loan to pay for your renovation.
When You Do Not Have Enough Equity in your Home: If the current value of your home is not high enough to cover the costs of the renovation, then you may be able to obtain a loan for the renovation based on the value of your house after the work is complete. If you chose to take out a new first mortgage home improvement loan (a refinance), the bank will pay off your existing mortgage and distribute the money for the renovation during the project. You will then have one new loan for your home. If you get a second mortgage, your existing loan will remain, and you will have two payments to different lenders at the end of the project.
Which Loan is best for you? This depends on the interest rate and term of your existing mortgage. If you current loan has a high interest rate, then refinancing may be appropriate. You should consider how much the closing costs would be, the new interest rate, and the term of the loan. If your current loan has a low interest rate, you may be better off taking out a second mortgage and keeping your existing 1st mortgage.
If You Need Assistance: To determine the best type of loan for you, consider asking your banker for advice. You will find that banks specialize in different types of loans, and not every bank will be able to provide you with the right loan for your particular situation. You may need to talk to several lenders before you find the one that is right for you.
