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Planning
Spring Home Improvements? Know the Score First
Spring is a popular time
to begin home improvement projects, especially if they’ll upgrade
outdoor
living spaces. With the economy keeping more homeowners in place,
rather than
moving up to bigger, grander digs, improving your home can elevate both
your
enjoyment and its eventual resale value.
A
great home improvement can enhance your enjoyment of your home
and its eventual resale value. Even if you choose just the right
improvement --
one that makes you love your home even more and will woo potential
buyers come
selling time -- you may still be frustrated wondering how you’ll pay
for your
project.
Before
you dive into your spring home improvement, keep a few
points in mind:
Your
Finances
First,
get your free credit score and report. Any significant
home improvement, such as building an addition or turning your backyard
into an
oasis, is probably going to require you to find financing. Before you
make a
single phone call to a potential lender, it pays to know your credit
score and
what is on your credit report. Generally, the higher your credit score,
the
more leverage you will have to negotiate a good financing deal,
including a
lower interest rate.
Enrollment
in membership based products like
FreeCreditReport.com give you access to your free credit report and
score,
which potential lenders will almost certainly use to determine if
you’re a good
credit risk. You’ll be able to see what finance companies see when you
look at
your credit report, including your payment history and whether there
are any
errors or other blemishes on your report.
Once
you’re confident of your credit score, you can evaluate
your financing options, whether it’s a second mortgage, a personal line
of
credit or a home equity line of credit.
Smart
Choices
Some
financed home improvement projects pay off more than others
in terms of enhancing your home’s value and your enjoyment of your
house. If
you’re opting for improvements to your outdoor living spaces, consider
ones
that will deliver the greatest return for your investment, such as
patios,
decks or screened porches. In fact, the National Association of
Realtors’ 2008
Remodeling Cost vs. Value found that outdoor improvements, such as wood
decks,
continue to recoup 80 percent or more in value upon resale.
Landscaping,
it seems, is also popular with potential buyers – a
University of Michigan study found that potential buyers scored a
well-landscaped home 11.3 percent higher than the same home without
good
landscaping. The trend for more Americans to stay home and invest in
their
surroundings, rather than spend on pricey vacations, has spurred
interest in
grand backyards that evoke the look and experience of a resort. From
in-ground
pools with water slides to lavishly tiered patios that feature built-in
hot
tubs, a growing number of homeowners are focusing on outdoor
improvements that
improve resale value and their current enjoyment of their homes.
Before
you make your summer remodeling plans, check your free
credit report. If you plan to sell your
home within five years, it might pay to check with your Realtor as well
to see
if he or she can give you an idea of how much your investment might
affect the
eventual sale price of your home
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