The Complete Home Renovation Guide

Many people have changed the way they work and live this year due to COVID-19. Whether you’re working from home, supervising a child’s virtual learning, or simply wanting more enjoyable spaces now that you’re entertaining and relaxing at home, homeowners everywhere are launching new home projects. If you’ve exhausted DIY options like painting and are ready to consider something bigger, this guide will give you the information you need to make informed decisions, stay calm, and figure out the best project(s) to achieve your goals for your home.

Assemble your team

Take your time asking friends and family for recommendations and interviewing several candidates before making a decision on a project. After all, these are the people you’ll spend the next few months with, who are responsible for taking your vision and turning it into reality without skimping on quality or going over budget. You don’t want to rush!

• Architect: If you need help developing the scope of the work through drawings and specifications.
• General contractor: Oversees the renovation project from start to finish by hiring subcontractors as needed and following local regulations during the construction process.
• Consultants: Provide any specialized design input that may be needed such as HVAC, engineering, etc.

Make design decisions

Whether you’re working with an architect, interior designer, or someone else, these are the decisions and steps you’ll face during the design process:

• Brainstorming: Flip through design magazines or browse the Internet to get a sense of what you like. Make a physical or digital collage board to collect your choices. If you do work with a designer, he or she will definitely want to get a sense of your taste.
• Schematic design: This is when an architect or interior designer creates rough drawings or computer renderings to translate your project requirements and goals into an actual site or floor plan.
• Finalize design: Produce final drawings, hire any needed consultants, document the scope of construction work, and make a schedule.
• Permits: Cross your T’s and dot your I’s by ensuring all necessary documents have been submitted to your local borough, township, municipality, or city agency for permitting approval.

Stay calm during construction

A home renovation is usually a joyful occasion, a chance for you to make your space your own and get what you’ve always wanted, whether that’s a chef’s kitchen or a dog bath in the mudroom. But even happy changes can be stressful and tearing up your home to rebuild can be hard to live through. People even joke that if a marriage can survive a major renovation, it can survive anything. Familiarize yourself with the stages of construction so you know what to expect and can stay calm through any bumps in the road.

• Schedule a kickoff meeting with your general contractor and the rest of the project team.
• Make an initial payment to your contractor.
• Construction begins!
• As your project progresses, you’ll be expected to pay your contractor and other team members as work is completed or as funds for materials are needed.
• Approve or reject change orders.
• Provide information and make smaller design choices as needed.

Post-construction

Once the dust settles, it’s time to wrap up your renovation project with a final walk-through and building inspection if required. Double check that your punch list is complete and make final payments to your contractor and team.

Financing your renovation project

Now that you know what to expect from start to finish in your home renovation project, it’s time to think about how you’re going to pay for your remodel. Most people can’t afford to pay for a major renovation in cash, so here are the most common financing options:

• Home Equity Loan: This may be the most popular option for financing a renovation project. If you have enough equity (the difference between your home’s current market value and your mortgage balance) in your home, you may be able to borrow the cost of your renovation project at a low interest rate.

• HELOC: A Home Equity Line of Credit is similar to a Home Equity Loan, but instead of receiving one lump sum, you get access to a certain amount of credit to use as needed. HELOCs offer more flexibility if you’re not sure how much your renovation(s) will cost.

Learn more about Home Equity Loans and HELOCs from Town and Country Bank and Peoples Prosperity Bank.

• Personal Loan: If you don’t have enough equity in your home to borrow against it, an unsecured personal loan is another option for financing a renovation project.

• FHA 203k Streamline Loan: Allows homebuyers and homeowners to finance up to $35,000 into their mortgage for repairs, improvements, and upgrades to their homes.

• Fannie Mae HomeStyle® Renovation Loan: If you’re planning to buy a fixer-upper or already living in one, you can add financing for renovations and rehabs into your conventional purchase or refinance home loan.

Learn more about these Remodel Home Loan options from Town and Country Bank and Peoples Prosperity Bank.

Top Home Renovation Projects in 2020

If you know your space needs a refresh, but you’re not sure where to start, here are the most popular home projects this year along with average costs:

• Garage Door Replacement: An inexpensive way to give your home’s exterior a facelift. Can be helpful if you plan to sell your home soon and want to add curb appeal. Cost ranges from about $728-$1,499.
• Manufactured Stone Veneer Siding: Another way to add curb appeal to your home for either you or a buyer to enjoy. Cost varies depending on how many square feet you need.
• New Wood Deck: Outdoor renovations are very popular this year due to COVID-19. You can use your deck for entertaining as well as relaxing by yourself. Costs range by size from $4,154-$11,194.
• Kitchen Remodel: You could do a minor renovation, such as keeping the footprint but switching out flooring, countertops, and/or the fronts of cabinets and drawers (known as refacing). Ripping everything up and creating a whole new floor plan will be more expensive.
• Bathroom Remodel: As with kitchens, you may be able to refresh your bath space without going down to the studs. Another option is to add a half bath to your first floor. Costs vary by the extent of the renovation, as well as the price of the materials you choose.
• Energy Efficiency: Save on your utility bills and help the environment with solar panels, energy-efficient lighting, home insulation, and more.
• Additions: Whether you need your home to serve more functions (home office, virtual schooling, etc.) or need to accommodate a growing family or caretaking duties, adding another room or two may be cheaper than buying a new, bigger home.

Apply for a home remodel and renovation loan today!

At Town and Country Banc Mortgage Services, Inc. we are dedicated to serving local communities throughout  Central Illinois and the Metro East, one person at a time. Locally owned and operated, we treat our clients like family and are able to originate loans in all states except California, Texas, New York, and Connecticut. To learn more about our home loan options and find the best fit for your needs, request a consultation with one of our mortgage lenders or apply online today.