Buying a home is a huge milestone, but it’s a pricey undertaking as well. That’s why many first-time homebuyers consider an “as-is” fixer-upper home to renovate and repair themselves. If you’re thinking of going the fixer-upper route, consider the following before you sign your name on the dotted line.
Prepare
Fixer-uppers can quickly become money pits no matter how inexpensive they appear to be at first. If you plan to play for renovations out-of-pocket, you still need a mortgage to purchase the house. For any mortgage loan, fixer-upper or otherwise, a lender will examine your credit. If you have had any hiccups in the past, you should clear them up ahead of time. Then you will need a down payment for your home, cash for renovations, and potentially a place to live while repairs are completed.
If you need to roll your renovations into the mortgage, there are loans especially designed for this purpose, but detailed cost estimates must be included. These estimates should consider all foreseeable expenses, including fees, inspections, and permits.
Hire Help
Once you have a particular property in mind, connect with an expert to walk through the home to see what kind of repairs will need to be completed. A professional can tell you if the home fits your budget and if it’s worth buying in the long run. Before you decide to purchase your fixer-upper, you’ll also need to have an inspection completed in order to avoid unforeseen problems.
Prioritize Projects
Once you purchase your fixer-upper home, determine which projects need to be completed first. Make a list to figure out what needs to be repaired right away and what can wait. Once you’ve prioritized projects, you can make a timeline that works with your budget. Many cosmetic home repairs are easy for homeowners to DIY, including repainting walls, replacing doors, and refinishing floors. When handling more intensive projects like plumbing, electrical, or structural problems, you should hire a professional.
A fixer-upper can be an invaluable investment. Do your research and plan carefully. With smart strategies, you can turn a fixer-upper into your dream home.