FinGate Solutions Limited

Here's How to Finance For Your Remodel

Until recently, borrowing money for a new kitchen, or other home improvements generally meant going to a bank or putting on the credit card, and hoping for the best. Today, however, you have many more options to help finance home improvements. A finance broker, for example, can offer a variety of finance options.

That means you might be able to borrow more money than you think. But how to skip all the confusion and land on the right lending program? Easy, by:

Knowing how much money you need and roughly how much you can get from the start
Narrowing the myriad loan options down to the ones that match your needs and finances
Concentrating on the lenders that are likeliest to provide the type of loan you want.
How Much Can You Borrow?

Whether you hire a contractor or take on the work yourself, begin with an accurate estimate of what the project will cost.

Lenders will insist on a specific figure before they work with you. If you're hiring a contractor, start with a firm quote, broken down into labor and materials. Then add on 10 percent for surprises (contingency). On work you'll do yourself, compile a detailed materials list with quantities, costs, and an accurate total. Include permit fees and equipment rental. Then add a cushion of 20 to 30 percent to be safe.

A broker - such as FinGate - has more loan sources to choose from. When looking for a broker, check with people you know, and check any references you get. Contractors are another source of financing, but be wary: It's hard enough to choose a contractor and a loan when they're separate. And be suspicious of contractors who emphasize the monthly payment instead of the total cost of the job.

Most importantly, do your research before committing.

- adapted from an article by Sid Davis