And if you want to skip the contractor? There’s a financing option for that, too. Let’s talk EasyPath™ Renovation.

What is EasyPath™ Renovation?

EasyPath is a program that allows you to roll your mortgage and renovation costs together, without having to hire a contractor or make big purchases on your credit card. Designed for home updates completed through major retailers like The Home Depot, Lowe’s, and Menards, EasyPath can be used with conventional renovation mortgages like CHOICERenovation^® and CHOICEReno eXPress^®.

6 perks of taking the EasyPath:

• Loan amount can be based on the projected value of your home after renovations
• Leverage the same interest rate as your home loan instead of your credit card
• Down payments as low as 3% to 5% for purchase transactions
• Purchase and refinance transactions are eligible
• Cardinal makes 100% payment to the retail store to purchase and install the project
• Fixed and adjustable rates available

When is EasyPath the right choice?

Whether or not EasyPath is right for you comes down to your timeline and the scale of your projects. If you’re looking for a faster financing process, EasyPath typically takes less time than working with a contractor. While you save time by eliminating the contractor search and independent quoting process, it also means that larger projects aren’t ideal for EasyPath. The bigger and more complicated the renovation project, the more likely you are to need a specialized contractor to handle it.

The EasyPath process, explained.

With traditional home renovation loans, you have to find a contractor and have your lender verify that they’re qualified for your planned renovations before you do anything else. With EasyPath, you get to skip that part. Here’s how it works:

Step 1: You visit an eligible big box chain store and complete a bid.

Step 2: Next, Cardinal’s Renovation Support Team reviews the bid, consults with the store, and orders an appraisal.

Step 3: Finally, the appraisal is completed based on the projected value of your home after the renovations are finished.

Bonus home renovation loan tips.

If you hadn’t noticed by now, you’ve got a lot of options when it comes to home improvement financing. Whether EasyPath is the right one for you or not, here are some tips to keep in mind before you apply for a home renovation loan.

• Budget for the unexpected
• Get multiple bids to find the best price
• Don’t try to do it all yourself
• Tackle one project at a time

When you’re ready to start your home renovations, we’re here to help finance them.

Want the perks of a home renovation loan without the process of hiring a contractor? EasyPath™ Renovation might be your solution.

The post Home Renovation Loans: 6 Reasons to Take the EasyPath™ appeared first on Cardinal Financial.

5 types of refinances for home improvement

• Cash-out refinance
• FHA 203(k)
• CHOICERenovation^® and CHOICEReno eXPress^®
• HomeStyle^® Renovation
• EasyPath™ Renovation

After we break down these top five types of refinances for home improvements, we’ll go over how to determine the best fit for your goals.

Cash-out refinance

A cash-out refinance* is not officially a renovation refinance. You can use the cash-out funds from your home equity however you see fit. But, many homeowners choose this type of refinance with the intention of using the cash out of their home equity to finance home improvements.

*Using your home equity to pay off debts or make other purchases does not eliminate the debt or the cost of the purchases, but rather increases the loan amount of your mortgage to be paid according to your new mortgage terms.

FHA 203(k)

From complete structural changes to minor home renovations, FHA 203(k) programs allow you to finance home rehab costs and your mortgage in one convenient loan. Backed by the Federal Housing Administration, FHA 203(k) loans offer Standard and Limited options. The right one for you depends on the scope of your planned home improvements.

FHA 203(k) Standard

• Structural changes allowed 
• $5K minimum, no maximum repair amount
• Landscaping and hardscaping allowed 
• 180-day maximum completion time
• Manufactured homes allowed 
• HUD consultant required

FHA 203(k) Limited

• Minor remodeling allowed
• No minimum, maximum $35K repair amount
• Landscaping and hardscaping not allowed
• 180-day maximum completion time
• Manufactured homes allowed
• HUD consultant not required 

CHOICERenovation^® and CHOICEReno eXPress^®

Freddie Mac’s CHOICERenovation is a mortgage that allows you to include your renovation costs in your home loan balance. CHOICEReno eXPress is essentially the same program, but for smaller-scale upgrades. What makes these two refinance options different from FHA (203)k Standard and Limited loans is that they’re not backed by any government entity. They are Conventional loans. That means different lenders may have different qualifying criteria.

HomeStyle^® Renovation

Fannie Mae’s HomeStyle Renovation is another Conventional refinance option to fund your home upgrades. It functions similarly to a CHOICERenovation loan, but you can combine it with other Fannie Mae products like HomeStyle Energy (designed for home improvements intended to conserve energy, cut utility costs, and increase the home’s resilience against natural disasters) and HomeReady (designed for low-income borrowers).

EasyPath™ Renovation

EasyPath Renovation is a program that allows you to roll your mortgage and renovation costs together, without having to hire a contractor or make big purchases on your credit card. Designed for home updates completed through major retailers like The Home Depot, Lowe’s, and Menards, EasyPath can be used with Conventional renovation mortgages like CHOICERenovation and CHOICEReno eXPress. It’s important to note that EasyPath itself is not a mortgage, it works with your renovation home loan to help you maximize the benefits.

EasyPath highlights

• Loan amount can be based on the projected value of the home after renovations
• Leverage the same interest rate as the home loan instead of your credit card
• Cardinal makes 100% payment to the retail store to purchase and install the project
• Fixed and adjustable rates available

How do I know which refinance for home improvements is right for me?

Like any big financial decision, there are a lot of factors to consider before committing to a renovation refi. Some of those will be unique to you, but here are a few key questions to ask yourself to narrow down your financing options.

What’s the scale of my planned renovations?

As we covered in this blog, different refinance mortgages are designed for different types of home projects. If you’ve got smaller updates in mind (like fresh paint, new floors, or new appliances), a loan like CHOICEReno eXPress is likely a better fit than CHOICERenovation or vice versa. Some loans, like HomeStyle Energy, are created for very specific types of updates. So, if you’ve got specialized renovations in mind, there might just be a niche loan for that.

How much equity do I have in my home?

Your home equity is what your home is worth in the current real estate market, minus the amount owed on your home loan. If your equity is high, a cash-out refinance is a popular way to leverage that equity. Plus, you can use any funds left over after renovations however you see fit.

What’s my credit score?

The importance of your credit score doesn’t diminish after buying your home. When you refinance, it still impacts the rates you can get and which refinance loans you can qualify for. If your credit score is higher, Conventional renovation loans might offer more competitive rates. If you’re still building your credit score, government-backed options like FHA 203(k) could offer you the flexibility you need.

At the end of the day (and this blog), the right mortgage lender should provide all the guidance you need to decide on the best way to fund your home renovations. So, don’t stress too much about having all the answers before you start the process. You’ve got this!

Rates aren’t the only reason to refi. It’s also a great way to fund home upgrades like new flooring, landscaping, and even structural changes.

The post Refinance for Home Improvements: How to Choose Your Best Fit appeared first on Cardinal Financial.

Decluttering Your Garage: The Ultimate Guide

• Start by taking everything out
• Don’t delay repairs
• Clean from the top down
• Designate the space for a specific use
• Maximize vertical space
• Consider resale value

Start by taking everything out

You can’t properly clean the nooks and crannies of your garage without removing all the clutter. This is also a chance for you to take inventory of everything in your garage, and get rid of what you no longer need. If you feel a sentimental attachment to items that you know you won’t use, consider thoughtful ways of rehoming them as opposed to simply throwing them away or leaving them to take up space in your garage.

Most items in working condition will gladly be accepted by local donation centers. But, you can also start closer to home. While you’ve got everything out, ask your friends, family, and neighbors if they’d like to stop by and claim anything you’re looking to rehome. Alternatively, a classic yard sale can provide the same function while also bringing in some spare cash. Win-win.

Don’t delay repairs

As you’re decluttering your garage, you may find areas that need repair. Whether it’s spackling a hole in the wall or fixing that glitch in the garage door, don’t wait to fix problems big or small. Make repairs while the damaged areas are easily accessible and not blocked by clutter.

Clean from the top down

This one is simple physics. Any dust and grime you displace while cleaning will inevitably make its way down, so save yourself the trouble of recleaning lower areas by starting from the top. Floors should be the last thing you clean.

Designate the space for a specific use

One of the biggest reasons our garages get so cluttered is that they often default to a catch-all for anything we’re not sure where to put. And while traditionally the answer to “What should I use my garage for?” might be obvious—cars, right?—in reality, most households will need the extra space for other purposes.

To help declutter your garage, you’ll need to narrow down those purposes. Is it primarily storage? Then consider investing in a full organization system to maximize the space. Is it your home gym? Prioritize placing equipment where you need it, and find somewhere else for your odds and ends to live. Whatever you want your primary use for the garage to be, declutter and reorganize with that at the top of your mind. Having a clear goal will make the decisions of what to keep and where to put what’s left infinitely easier.

Maximize vertical space

Especially if your garage is serving multiple functions, you’ll need all the space you can get. The walls are your friends here. Maximize vertical storage space with shelves and hooks to keep as much of the floor clear as possible for larger items that can’t be stored vertically.

Consider resale value

Understandably, no one is eager to drop a significant chunk of change on decluttering a garage. And if a thorough cleaning is all that’s in your budget this time around, that’s absolutely fine! However, any home upgrades you make to your garage—such as installing a new storage system, replacing flooring, or even a fresh coat of paint—can increase your home’s value. 

That means not only could you make money back when you sell your home, but you could also find yourself with more home equity. That home equity can be leveraged for new rates, better terms, or even cash out when you refinance your mortgage. 

Pro Tip: Your home loan can also finance your home upgrades. Check out our renovation loans to learn more.

Decluttering Garage: Bonus Tips

No garage decluttering guide would be complete without some bonus tips. Try these extra strategies to make the most out of your garage spring cleaning efforts:

• Some items, like papers and electronics, need a more temperature-controlled environment than a garage typically offers. Understanding what NOT to store in your garage can go a long way toward preventing clutter (and damage to your belongings).
• Add a floating shelf to the ceiling. In addition to vertical space on your walls, if you have enough room overhead, you can consider installing a durable metal shelf suspended from the ceiling (picture it like an upside-down table). Just make sure you adhere to weight limits and install it with care to prevent any accidents.
• Whether you’re using bins, bags, drawers, or something else to keep things organized, make sure you label everything according to its contents. Not only will it make items easier to find, it will also encourage you to stay organized in the long term.

Any home upgrades you make to your garage—such as installing a new storage system, replacing flooring, or even a fresh coat of paint—can increase your home’s value.

The post Decluttering Your Garage: Spring Cleaning Tips and Tricks appeared first on Cardinal Financial.

Home improvements for tax deductions to consider

Home improvements that qualify for tax deductions typically fall into one of these four categories:

• Renovations for medical conditions
• Eco-friendly home upgrades
• Home office additions
• Improvements made to sell your home

However, as with all things taxes, it’s not that simple. Which home improvements are tax deductible depends on the scale of the project, how you use the renovated space, and more detailed criteria. Plus, some states may have different tax requirements than others. With that in mind, let’s get into what you can generally expect to qualify.

Renovations for medical conditions

Accessible home modifications are often eligible for tax deductions. These include medically necessary home improvements intended to make the home livable for a person with a disability who resides in the home.

Common deductible home improvements for accessibility

• Widening doorways
• Installing stair lifts and ramps
• Installing voice-activated control systems
• Installing handrails and grab bars throughout the home
• Converting standing showers and tubs to include accessible seating

Eco-friendly home upgrades

In case helping out the planet (and lowering your utility bill) wasn’t incentive enough to go green, many home improvements for energy efficiency can help you qualify for more tax deductions. Barring very few exceptions, these deductions can only apply to your existing home, not a new home you’re constructing from the ground up. 

Common deductible home improvements for energy efficiency

• Installing ENERGY STAR-rated doors and windows
• Installing ENERGY STAR-rated appliances
• Installing solar panels
• Replacing insulation materials

Pro Tip: What does an ENERGY STAR rating actually mean? ENERGY STAR-rated products meet strict energy efficiency standards set by the US Environmental Protection Agency. Learn more here.

Home office additions

If you run a business from home, you may be able to deduct that space from your taxes. In general, your home office needs to be an exclusive part of your home that you use only for conducting business on a regular basis. Your home office should also be your principal place of business. If you spend 9-to-5 at a storefront and use your home office to catch up on overtime tasks, that home office space likely won’t qualify. 

Common deductible home improvements for your home office

• Installing new equipment needed for work (such as a new printer)
• Renovations made to your entire home that impact the office (such as new floors throughout)
• Repairs made to the office exclusively

Pro Tip: Most home office tax deductions are based on the percentage of your home’s square footage that the office occupies. So, first things first, bust out that measuring tape.

Improvements made to sell your home

If you sell your home for more than you paid for it, that’s called capital gain. And in tax world, capital gain is, you guessed it, taxable. Luckily, it’s possible to reduce the amount you’re taxed for that capital gain based on how much money you invested in the home. Even if those renovations weren’t necessarily made with a sale in mind at the time, you could still qualify. 

Common deductible home improvements for home sales

• Structural additions, like a new garage
• Landscaping installations, like a swimming pool or firepit
• Plumbing or HVAC upgrades
• New flooring

As a general rule of thumb, upgrades required to maintain the livability of your home do not qualify. For example, the cost of repairing a leak in the ceiling won’t be eligible for a deduction.

Other potential home improvements for tax deductions

If you own a rental property, home improvements generally are not deductible. However, you may be able to deduct the cost of necessary repairs to the property. Whether or not a home improvement project on a rental property is considered deductible essentially comes down to whether that repair was necessary to make the home livable (deductible) or whether it was simply enhancing the space (not deductible). Additionally, you should look into specific state or local tax deductions for home improvement projects. Depending on where you live, you may have more options than you think.

Bottom line? Homeownership can offer so much more than just a place to live. Tax deductions for home improvements are just one way to make the most of your investment.

This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before making the decision to buy or refinance a home.

Not only can renovations boost your home’s value, but some projects could qualify you for more tax deductions.

The post Top Home Improvements for Tax Deductions appeared first on Cardinal Financial.

3 Key DIY Home Renovation Tips

• Decide which projects you’ll DIY, and which you’ll leave to the pros
• Budget for more than you think you’ll need
• Work on one project at a time

Decide which projects you’ll DIY

As a general rule, you’ll want to avoid DIYing projects that require permits (this will vary depending on where you live, so do your research before you start). Similarly, projects involving your electricity, plumbing, and HVAC system are better left to professionals. So, what projects can you DIY?

Demolition

As long as you take proper safety precautions, demolition is a home renovation project you can tackle yourself. Just don’t knock down that load-bearing wall, please. And if your home was built prior to 1979, make sure you test for lead paint and asbestos first.

Paint

A fresh coat of paint is a mainstay of DIY home updates. Choose your colors, cover your furniture and floors, and have fun. And if you don’t feel like taking on your whole home, simply painting your front door with a statement color can boost your curb appeal.

Fixtures and finishes

Swapping out light fixtures, switch plate covers, and cabinet hardware is a simple update that can make a big difference. All you really need to handle this one is the right screwdriver. Since fixtures and finishes are easy to swap out, this is also a good way to incorporate current home decor trends. If you don’t like the look or trends change, updating them again is a simple process.

Drywall (sometimes)

This one really comes down to how much confidence you have in your drywall abilities. Patching up a few holes is a skill every homeowner should have, but large-scale drywall projects are typically not worth the headache of doing yourself. So, if your whole home needs new drywall, call a pro. If it’s a small area, go ahead and DIY (if you want to, of course).

Budget for more than you think you’ll need

An evergreen home renovation tip? Expect the unexpected. That includes your budget, too. While you can save a lot of money by DIYing, you’ll still need to account for the costs of materials and tools in your budget—with wiggle room for any do-overs you may need. Luckily, your mortgage could actually help you finance those home projects. With a cash-out refinance, you can leverage your home equity for cash and use those funds to cover your renovation expenses.*

*Using your home equity to pay off debts or make other purchases does not eliminate the debt or the cost of the purchases, but rather increases the loan amount of your mortgage to be paid according to your new mortgage terms.

Work on one project at a time

Ready to practice mindfulness? One of the best DIY home renovation tips we can offer is to be patient. Tackle one project at a time so that if life happens and you need to pause, your whole home won’t be in disarray. Starting with just one project is also a good way to gauge if DIY is the right choice for you. Sometimes, the work just isn’t worth it and you may decide that professional renovations are a better fit going forward. No judgment here.

If you do opt out of DIY renovations, you may be able to use a renovation loan to roll your mortgage and project costs into one. This can help streamline the process, ensure your contractor is reliable, and lower your up-front renovation expenses.

Bonus DIY home renovation tips

Don’t hit the ground running with your home improvement ideas just yet. Before you go, here are a few bonus DIY home renovation tips to keep in mind.

• Stay flexible. Timelines, budgets, and visions may have to change as you go, so don’t stress if everything doesn’t go exactly to your original plan.
• Collect plenty of inspiration. Having a visual aid to guide your work usually results in a better finished product than freestyling it.
• Ask for help. DIY doesn’t have to mean actually doing everything yourself. Ask for your friends’ opinions on design options, host a house painting party, and make the most of your community resources.

Our top DIY home renovation tip? Understand which projects should actually be DIYed, and which are better left to professionals.

The post DIY Renovation Tips: What Should You Actually DIY? appeared first on Cardinal Financial.

In this blog:

• Cost comparisons
• Timing differences
• Labor needs
• Customization opportunities
• Financing options

New Build vs. Renovation: Costs

Like many big decisions in life, choosing between building a new home or renovating an existing one may come down to your budget. As you might expect, it usually costs less to renovate than build. New build costs will include the land you’re building on, plans, permits, materials, labor, and more depending on how customized you want it to be. 

Renovation costs are largely going to come from materials and labor. According to Forbes, the average cost of building a home is $150 per square foot, while the average cost of renovating is $100 per square foot. Of course, the price depends on many different elements like where your home is located, the materials you choose, and your floor plan.

Pro Tip: Whether you build or renovate, you can simplify budgeting with specialized home loans. More on that later.

New Build vs. Renovation: Timing

Building a house takes time, with just how long depending mainly on the level of customization and the area you’re building in. The average construction time for a custom home is about 9 months. Extreme weather conditions (like triple-digit summers in the south and harsh winters in the north) can also cause delays.

You know those home renovation shows where they give the space a complete makeover in one weekend? That’s not how actual renovations work. It may take months to complete what you have in mind. On the plus side, you can tackle your projects one at a time so that you don’t have to pay for everything (everywhere) all at once. This also means you’ll likely be able to live in your home while renovations are ongoing, saving you the expense of a temporary place to live until they’re complete.

New Build vs. Renovation: Labor

When it comes to new build homes, building them is actually the easy part. Labor will be one of the lower costs in your new build budget, but there are several different players involved in the process. Your experience may vary, but you can typically expect to work with:

• An architect
• A builder
• Trade contractors
• Inspectors
• Lenders

For renovations, labor will likely be your biggest expense. Especially for more complex projects like replacing plumbing or HVAC systems, you may need to bring in specialized contractors for different stages of the job. For surface-level updates like new floors and finishes, your labor costs will be lower as the work generally requires less time and skill.

New Build vs. Renovation: Customization

The biggest perk of building a new home is being able to customize it however you like (or however your budget allows). You can make a place your own with renovations, but there’s still only so much you can change with fresh paint and new cabinets. If you’re not planning to be in your home for the long haul, though, renovations are probably a smarter investment. No need to spend more time and money on custom elements that you won’t be in the home to enjoy down the line.

New Build vs. Renovation: Financing Options

We’ve talked about the costs of building vs. renovating, but how about the ways you can actually cover those costs? There’s good news on that front: You can choose from a variety of funding options that allow you to leverage your mortgage to fund your projects.*

*All product guidelines are subject to change, so please consult your loan originator for qualifying details specific to your home loan criteria.

Pro Tip: To qualify for these specialized renovation loans, your projects will need to be done by professionals. If you’re more of a DIY type, a cash out refinance or HELOC (home equity line of credit) could help you leverage your equity to finance home upgrades.

So, is it better to renovate or build new?

New build vs. renovation is a decision that comes down to your unique homeownership needs. There’s no “right” answer, but these guidelines should help you find the one that best fits your goals.

It’s better to build new if:

• You don’t plan on moving again or for awhile
• The ability to customize is your priority
• You already own land to build on
• You have access to other living arrangements for the duration of construction

It’s better to renovate if:

• You’re likely to move again in the next few years
• Budget is your priority
• You live in an area with limited access to labor, materials, and good building conditions
• You need to move in as soon as possible

And remember, if it feels overwhelming or you’re not sure where to start, our team is here to help.

The decision to build new or renovate a home ultimately comes down to your budget, your location, and your move-in timeline

The post New Build vs. Renovation: How to Choose Your Best Fit appeared first on Cardinal Financial.

If that’s the case, or if your needs have shifted throughout various life stages, you may want to consider new home construction. Not just any new construction, though—custom construction, or the opportunity to build your dream home from the ground up. 

A one-time close construction loan, which allows you to pay for a plot of land, all the lumber, and the labor with one convenient mortgage, may be able to help. 

Breaking down the benefits

There are three main reasons to consider a one-time close construction loan when building a custom home: Cost, credit, and closing. 

Cost

Depending on what type of one-time close construction loan you go with, your down payment probably won’t be what you think it’ll be. Sure, there’s the common notion that you should put down 20% (which we’ve dispelled before), but VA buyers could obtain financing with nothing down and FHA buyers could build a custom home with as little as 3.5% down. 

Beyond that, a one-time close construction loan allows buyers to roll the cost of land, building materials, and labor into one loan—saving you from having to pay two mortgages: one for the land and another for the home itself.  Even better? You’ll make interest-only payments during construction, saving money upfront. 

With a one-time close construction loan, you’ll make interest-only payments during construction, saving money upfront. 

Credit

Because you won’t have to take out two separate loans to fund the purchase of land and labor, there’s no need to worry about re-qualifying. So, instead of taking two hits to your credit report—potentially and unnecessarily dragging down your score—you only have to submit one application and go through one underwriting process.

Closing

Since a one-time close loan pays for the land and the construction, you only have to work through one closing. That closing occurs before construction even begins, and because a one-time close loan comes with a fixed rate, you never have to worry about market changes forcing your rate to rise. 

It’s all part of the process

Building a custom home isn’t as simple as buying a bunch of wood and throwing some shingles on a frame. Because a one-time close construction loan is still a mortgage, it comes with its own set of procedures and requirements. Here’s what you can look forward to:

1. Contractor Validation
   We’ll review your builder’s qualifications, including their own credit reports, building history, and project references.
   
2. Project Approval
   If your construction details meet loan standards, we’ll make sure the budget fits the project and approve a start date.
   
3. Underwriting
   After submitting your application, our underwriter will review the information like they would any mortgage.
   
4. Closing
   Once approved, we’ll schedule a closing date to sign final documents and pay whatever closing costs are left to pay.
   
5. Funding
   Throughout construction, your builder can request to draw funds from your loan to pay for materials, labor, and other costs.
   
6. Completion
   This one’s easy! Once construction is over, it’s time to grab some friends and pack those moving boxes.
   
7. Conversion
   Once everything’s done and dusted, we’ll convert your one-time close construction loan into a permanent mortgage.

Any downfalls?

One-time close construction loans are pretty straightforward, and they come with a long list of benefits (including the fact that they can be used for primary, secondary, and investment properties). That said, there are some considerations to think about before opening an application. 

First, due to the COVID-19 pandemic, lead times on construction materials, as well as their costs, are both heightened in the current market. So, keep in mind: These factors could impact your total loan amount. 

Second, a one-time close loan tends to come with a higher interest rate. If rates are already higher due to market conditions, you may want to run your budget with your rate quote to make sure everything is affordable.

What’s it cost?

Some sources report that building a house can cost anywhere from $500 to $1,000 per square foot, depending on location. According to American Home Shield, the average house size in the U.S. is 2,500 square feet, meaning a custom build may run anywhere from $1.25 to $2.5 million. 

If that number shocked you, don’t worry too much. Other sources pin the average cost of a custom, similarly sized home at about $500,000. 

So when you’re building a house, your location, equipment, and finishes can and will push your costs up or down. The safe bet is to leave some cushion in your budget, just in case. Even safer? Get pre-approved for construction loan financing with a lender you trust. That way, you know exactly what you’re getting into with your one-time close construction loan.

The post Land, Lumber & Labor: How the One-Time Close Construction Loan Does It All appeared first on Cardinal Financial.

Pro Tip: Saving up for renovations? Check out our best money-saving strategies here.

5 DIY home renovation budget tips

• Make small changes first
• Embrace the paint
• Focus on your floors
• Rethink your storage space
• Demo it yourself

1. Make small changes first

The temptation to give your home a big overhaul is understandable, but you might be surprised what a significant difference small updates can make. So, before you start knocking down walls and ripping out cabinets, take inventory of small details that are easy, cost-effective swaps. This could include:

• Replacing hardware on drawers and cabinets
• Installing decorative switch plates over your standard light switch covers
• Adding statement fixtures in focal lighting points like your dining room, entryway, or front porch
• Updating your decor palette (darker tones add depth and drama, while lighter tones can help open up your space)

If small changes still aren’t doing the trick, it’s time to take it to the next level: Repainting.

2. Embrace the paint

Painting sometimes gets a bad rap for being a pain, but it’s well worth the work. To get the biggest bang for your buck, start with accents like trim, cabinets, or even a single accent wall. For best results, try these paint job tips and tricks:

• Paint during dry weather. Humidity makes it harder for paint to dry, resulting in more drips and uneven patches.
• Invest in the right tools. Make room in your budget for quality brushes, roller covers, and tape to save yourself a lot of frustration and do-overs.
• Use primer. If you’re considering renovations, we’re assuming the walls aren’t in pristine shape to begin with. Before applying paint, a primer base will ensure it all goes on evenly.
• Start at the top and work your way down. The last thing you want is paint dripping down onto the surface you thought you just finished.

While paint is a cost-effective update, you may want to avoid choosing colors that are too on-trend for your DIY home renovation. Unless, of course, you want to paint it all again in a year or two. If that’s your thing, don’t let us stop you. Otherwise, neutrals are always a safe bet.

3. Focus on your floors

Refreshing your flooring may seem like a lot of work, but it’s actually one of the more budget-friendly DIY projects out there. Plus, there are a lot of simple ways to give your floors a new look. If you’re working with a natural wood floor, try sanding it and applying a new coat of varnish. Peel and stick tiles are also an easy option, especially for smaller spaces like bathrooms and utility rooms. A fresh coat of paint can also spruce up your floors, just make sure to plan your painting schedule for a time when you can be out of the house long enough for it to dry without getting stepped on.

4. Rethink your storage space

Storage may not be the first thing that comes to mind when you remodel. After all, isn’t the point of storage to keep things out of sight, not draw attention to them? Not necessarily. Open shelving’s moment may be passing, but implementing stylish storage into your home can still involve minimal effort with a big payoff.  Some easy-to-update options include:

• Portable kitchen islands
• Free-standing bathroom cabinets
• Ottomans and benches with storage
• Stylish entryway racks
• Headboards with built-in shelving

5. Demo it yourself

Finally, the fun part. Breaking things down requires less finesse than building, but don’t dive in without brushing up on some fundamentals of demolition. Experts recommend staying away from demo on interior spaces unless you’ve done it before. Otherwise, you risk knocking down a load-bearing wall or damaging wiring and plumbing. On the other hand, outdoor spaces like a deck or porch should be simple enough for a novice to handle.

If the DIY route isn’t for you, renovation loans can help you finance your professional home updates and your mortgage in one convenient process.

Are there any other DIY home renovation tips to know?

You’re investing more than money when you DIY. You’re also investing your time, energy, and creativity. So, before taking on a DIY project, remember that it will probably look worse before it looks better. Don’t get discouraged halfway through your renovations! The mess and inconvenience now are well worth you loving your space later (and the boosted home equity doesn’t hurt, either).

The post DIY Home Renovations on a Budget appeared first on Cardinal Financial.

Getting Started

Building a home isn’t as simple (or as fast) as it appears in those home renovation shows. Teams don’t just show up with a truckload of 2x4s and some concrete. It takes time and coordination to do it right. When going custom, you typically have two “ins,” one of which is far easier than the other. 

Congratulations, whether you’re a first-time owner or someone who’s getting around to building the custom home you’ve been working for your whole life, you’re about to embark on an exciting process.

Option one? Go with a builder that already owns a plot of land and is selling empty lots for your future home. These are typically planned neighborhoods that you’ll have limited control over. You go in, pick a lot, select your finishes, and get financing. It’s straightforward and easy, but doesn’t allow the versatility that a fully-custom home likely would. After all, these planned neighborhoods usually feature set, blueprinted styles and more affordable materials.

Option two? Secure your own lot and hire an independent builder to build a custom home from foundation to finishes. This route is more involved, but grants the buyer (that’s you) more control over the process. 

Custom Construction Loans

Let’s say you opt for option two. In this choose-your-own-adventure story, you’re again looking at two routes:

1. You need a plot of land to build on. Unless you already have one, you’re going to need to buy one. You could obtain separate mortgages for both the land and the construction, but this requires two applications, two underwritings (which means double the credit hit), two closings, and will result in two mortgage payments. 
2. Alternatively, you can go for a one-time close loan. This accessible loan type allows you to bundle the purchase of the land and the labor into one loan. That’s one down payment, one closing, and one mortgage payment. If this option sounds like a better fit, get in touch with one of our experts to discuss the ins and outs of one-time close loans.

Looking Ahead

Next up? A whole host of steps…

Plans

If you’re hiring an independent builder, they may have existing home plans you can choose from. If not, or if you’re looking for something different, you can purchase new plans. Heads up, though: new plans may cost you, but it’s up to you to decide how the cost compares to the outcome. 

For pre-drawn plans, expect to pay upwards of $2,000 or more. For custom floor plans that allow you to map out pretty much every aspect of your home, expect to pay upwards of $10,000 or more. Note: These price points are estimates based on industry norms, but the exact cost will vary depending on the builder you choose.

Builders

When picking a builder, you’re going to want to do your research. Contractors can sometimes get a bad wrap for skipping out on work or using cheap labor and materials, but that’s not always the case. Our advice? Read as many reviews as you can, seek out referrals, and interview multiple builders before selecting one that you feel is equipped to build your dream home. 

Permits

Permits are required for just about every part of the construction process, as are inspections for the work being completed. Adding gas lines? Permit. Grading a yard? Permit. Wiring? Permit. They can be time-consuming and expensive to obtain, but they’re vital because they often require plans. Plans are beneficial because they show that your builder has the professionalism and foresight to hit deadlines and keep the project moving forward. 

Construction

When your team is ready to build, here’s a rough idea of the process you’re looking at, from start to finish:

• Preparation (grading, leveling, etc.)
• Foundation (crawl space vs. slab)
• Framing
• Rough plumbing, electrical, and HVAC
• Siding, roofing, and insulation
• Drywall and fixture installation
• Countertops and flooring
• Finishing touches
• Final walkthrough

Inspection

Not only will local and state officials come through to verify your home’s work is up to code, this is also your chance to look for anything you want taken care of before signing off.

Here, nothing is too small to bring up to your builder. Sure, things will settle over time, but you’ll want to keep an eye out for drafts, leaks, flickering lights, doors that aren’t level, and consistent paint coverage. Not sure about something? Ask your builder. 

After all, this is your home, your expense.

Building Is Great Because…

While building a house might be more complicated than buying an existing home, it comes with its own set of benefits. For starters, what’s not to love about whole-home customization? We’re talking location, layout, lighting, flooring, fixture finishes, equipment…everything. 

With that customization, you get access to new options for energy efficiency, meaning your new construction home can help you save on bills while saving a little bit of the environment. And, because you’re building from the ground up, you face little to no competition with the rest of the housing market.

Downside? The COVID-19 pandemic continues to have lasting impacts on the industry, meaning lead times are longer and materials are more expensive. Speaking of expenses…

The Cost of Building

Details vary, but Architectural Digest reports that building a house can cost anywhere from $500 to $1,000 per square foot depending on location. Meanwhile, American Home Shield’s 2022 American Home Size Index shows that the average size of a house in the United States is roughly 2,500 square feet. 

Crunching the numbers shows us that building a house that size can cost anywhere from $1.2 to $2.5 million—averaging out to $1.875 million. 

If that number caused your jaw to drop, take this bit of solace: Other resources pin the average cost of a custom, similarly sized home at roughly $500,000—just a little north of the average “sold” price of a home in 2022. 

What’s it all come down to? When building a house, your location, equipment, and finishing touches will push your costs up or down. The safe bet is to leave some cushion in your budget, just in case. Even safer? Get pre-approved for construction loan financing with a lender you trust (ahem, we know one).

The post What To Expect When Building a Home appeared first on Cardinal Financial.

If you’re reading this, you’ve probably been dreaming up similar post-renovation scenes nonstop. A kitchen, bathroom, or complete home makeover might be overtaking your every thought. But how do you achieve those picture-perfect goals? This renovating a house checklist will take you through each essential step.

From goal setting to enjoying your upgraded space, our list has your reno all planned out.

Renovating a House Checklist

1. Rank your reno goals

Have a laundry list of potential home renovations? Yeah. Us too.

It’s fun to dream up extravagant home upgrades. But remember that each one comes at a price. You might not know your budget yet. So, reorder your wishlist from most to least important. This will help you cross upgrades off, starting at the bottom of the list, once you establish your renovation budget.

Tip: Write each renovation idea on a separate sticky note. Move the notes around until you have the most important one at the top and the least important at the bottom (and everything in between). You can add estimated prices via a quick online search for added budget info.

2. Consider home value increases

As you prioritize your reno wishlist, it might be helpful to consider the potential equity you could be adding to your home with each project. We can’t give you exact numbers since every local housing market is different. But, there are some widely accepted “higher value” home upgrades you might invest in:

• Modest kitchen updates – Cabinet refinishing, new backsplash, and upgraded lighting.
• Basic exterior face-lift – Fresh coat of paint, siding replacement, or simple landscaping.
• Upgraded bathroom – A new toilet, fresh tiling, and modern light fixtures.

If you know a good real estate agent, reach out for their expert opinion on renovation projects that might increase your home equity. They’ll know your local market much better than Google does.

What’s home equity? It’s the amount your home is worth, minus what you owe on your mortgage loan.

3. Set a budget

You knew this was coming. You can’t get a kitchen that chefs dream of without forking over some dough. If you’ve saved up for your home upgrades, great! You already know your budget.

If you don’t have the funds lying around, you might consider a cash-out refinance. With a cash-out refi, you’ll replace your existing mortgage loan with a new one and pocket a portion of the home equity you’ve been building. It’s like breaking into the piggy bank you’ve been slowly filling with each mortgage payment.

The great thing about using cash from a refinance for home upgrades is that you’ll be working to rebuild the equity you withdrew. Plus, you get to enjoy your renovated home for years to come. It’s a win-win.

Connect with one of your mortgage experts for a cash-out refinance estimate. There’s no commitment and no charge.

Going the cash-out refinance route? Your cashback amount can serve as your budget.

Now that you know how much you can spend on renovations, it’s time to nix the projects that don’t fall within your predefined budget. And remember to leave some financial padding for when something costs more than expected.

Sorry. But also, you’re welcome.

4. Find inspiration

Budgets are boring, but renovation inspiration is so much fun! Now that you know which projects you’ll invest in, it’s time to browse the internet, magazines, and home design shows. Establish your style so you can guide the final outcomes.

5. Select your team

Seek contractor referrals from friends and family. You can also take to the internet for home renovation professionals with glowing reviews.

Sites like Yelp, Thumbtack, and Angi can be beneficial when finding the right team for your renovation. Consider hiring several contractors who specialize in the different projects on your list. You might not want the plumber to install your kitchen backsplash. Just saying.

Tip: Get 2-3 estimates for each project you’re planning. You’ll be able to compare pricing and see how each contractor approaches communication.

Once you pick your favorites, it’s time to get renovating!

6. Prepare your space

Your home prep to-do list for renovations will depend on which areas you plan to upgrade. But in general, you’ll want to put away valuables so they don’t get damaged or dusty. And don’t forget to think through the fact that you might not have appliances like a fridge or washing machine for several weeks. Consider updating your security system while you’re at it. If you’re going to be out of the house for extended periods of time, solid security makes sense.

7. Make living arrangements

Planning on refinishing the basement or upgrading a space you rarely use? You might be able to kick it at home during your remodel. But, if your kitchen and bathrooms are off-limits for a week or two, you might want to book a hotel or plan to stay with loved ones. Unless you want to camp in the backyard, that is.

8. Expect surprises

Remember when we said you should have a budget buffer for unexpected expenses? Well, budget might not be the only unpredictable aspect of home renovations. Timelines, materials, and the people involved can all throw wrenches into your reno plans.

Can you prepare for the unknown? We’re not philosophers, but just don’t say we didn’t warn you.

9. Enjoy your new space

After all that planning and couch surfing, you’ll finally be able to sit back and enjoy. Your home might even look like one from those gorgeous catalogs you’ve been pouring over. Plus, you probably upgraded your home’s value as you worked through this renovating a house checklist.

More home enjoyment. More home equity. Totally worth it.

You can’t get a kitchen that chefs dream of without forking over some dough. If you don’t have the funds lying around, you might consider a cash-out refinance.

Share your home reno inspiration on Facebook or Twitter. Can’t wait to see what your future space will look like.

The post The Renovating a House Checklist You Absolutely Can’t Skip appeared first on Cardinal Financial.