The Big QuestionThe biggest question you have to answer is how much can you afford. The fact is, you are either going to take on debt to pay for the remodel or you may use savings. You may want to tap into a home equity loan. Rather than allowing a Denver home remodeler to create a budget for you, you set the budget and then contact a remodeler to find out what they can do for you within that budget.
One of the questions to ask yourself is how long you plan to live in your home. Experts say that if you plan to be there for more than ten years, you should work to create the home of your dreams. On the other hand, if you plan to leave sooner, do projects that are within your budget and within the real estate comparisons for your local area.
Next, consider your current debt obligations. What are you already paying on a monthly basis? Would adding this new debt into your current debt load be something you can afford to do? Consider all of your expenses and then determine how much more you can afford to spend towards a remodeling project. Gather all sources of income next. Find out how much money you have coming in.
From this point, you want to consider how much debt to income ratio you are taking on if you take on the remodeling project. To calculate this, add the estimated monthly payment for the project to your current monthly expenses. Divide this by your gross monthly income. In most cases, lenders will approve debt to income ratios that are under 45 percent, sometimes slightly more. If you are spending too much of your income on your expenses, chances are good that you are going to struggle to make payments and lenders will not loan to you at that point.
Work the numbers until you get the right amount you can pay for the home remodeling project you plan to do. Then, consider the best contractor for your project. If you plan to redo the basement, turn to Denver basement remodel professionals Aspen Basement for the help you need to get your project underway. Once you get the financing straightened out, you will feel more comfortable working with your lenders and getting the project underway. Large or small projects, including redoing your basement can be manageable when you approach it in this manner.