Get the most out of your renovation loan with these three types of home upgrades!

Have you always dreamed of buying your perfect home? Then, you might find looking at houses a little frustrating because no place will meet all your needs. There’s always going to be something you wish you could change or want to update. This dilemma leaves you with two choices on your home-buying journey: build your dream home or purchase a home to which you can make repairs and renovations over time.

Building a home from the ground up is an extensive process. It can take more time and be more expensive than buying and renovating a home. So if you’re opting for the second option of purchasing a home you can remodel, the next question is: how do you finance the repairs? Luckily for you, we have the answer, a renovation loan.

A renovation loan is precisely what it sounds like. It is a loan that allows you to finance the property you are buying and the costs of the renovations into one monthly payment. It’s a fantastic option for new buyers and even for homeowners who are refinancing and need repairs to their homes. The cost of your renovations will be tied to your mortgage payment, and you will pay it off over time as you do your mortgage. It’s a great option if you don’t have repair funds upfront, but it can leave you on the hook for paying off repairs for several years. That’s why it’s best to focus on renovations and repairs that will improve the value of your home and last longer, like:

• Kitchen and Bathroom Remodels: Kitchen and bath renovations have the third-best investment return of all projects, according to Remodeling Magazine. They also dramatically improve your home’s look, and function and are a significant focus point if you ever choose to sell.
• Energy Upgrades: Using your renovation funds to make energy efficiency upgrades like installing solar panels, adding more insulation, energy efficient windows, and home heating upgrades is a fantastic way to lower your utility bills as soon as you take possession. These upgrades also start to pay off faster than you think and can be a major attraction point for sellers when you’re ready to move on!
• Disaster Prevention Upgrades: If you live in an area prone to extreme weather, it would be wise to invest in upgrades to protect your home. These types of upgrades will not only protect your home but will help keep you and your family safer during extreme weather.

There are plenty of different upgrades and renovations you can make when you apply for a renovation loan. We advise ensuring that your loan will fund a renovation worth the cost over time. So if you’re ready to take the plunge and apply for a renovation loan, talk to your local PRMI advisor today.