Exterior home renovations are not a decision to make lightly, and they aren’t cheap, but that doesn’t make them any less important. They are an investment that will increase the value of your home, increase your comfort and make your home more beautiful than before. They are also affordable to homeowners whether or not they have the ability to pay for them outright or not.
If you are looking to begin planning for new roofing, siding, windows or any other major exterior renovation project, follow these budgeting tips to help you bring your project one step closer to completion.
Assess Your Financial Situation
Before you begin planning, it’s important to see if you can even afford to make any renovations on your home. Take the time to step back and assess your financial situation to find out the following:
- How much cash you have in your checking/savings accounts
- How much debt you are currently in
- How much left you have to pay on your mortgage
- How much you are expected to spend within the next year
- How many other large purchases/projects you have coming up
Getting a good look at your entire financial situation will help you decide if new renovations are in the budget.
Order Your Priorities
Are you looking for new roofing for your home? Is siding replacement something you need? Are your windows old and in need of replacement? Categorize your desired projects based on what absolutely has to be done, what needs to be done in the future and what is just nice to have (i.e. you are replacing for aesthetic reasons only). This prioritization will help you decide which project or projects to tackle next and in which order.
Set a Maximum Budget
Based on your finances, what is your maximum budget? What is the minimum amount you will be able to afford? What is the minimum amount you will be able to put down on a project? These numbers will help you set a baseline budget that guide you throughout the entire process. Having a set budget in mind will not only keep you on track to not overspend, it will also help you figure out which types of materials you can use and which are outside your price range. The most important part of this is sticking to your budget!
Look at Financing Options
Credit card debt is some of the most expensive debt there is to carry, but it can be an option if you are only looking to put a small amount of money on the card. There are other financing options available that include increasing and refinancing your mortgage and financing through the company you contract to complete the project. Make sure to ask about financing options when you begin working with a contractor to get a quote on your project.
