FREE Custom Design Meeting Call Today! (919) 542-4457

Welcome to our Blog

We want to help you love where you live. Keep up with the latest in home construction & renovation trends and news. We also offer industry related tips, ideas for diy projects, and more – enjoy!


How To Finance a Custom Home Remodel

Sometimes you love the location of your home, but the structure itself feels a bit worn or no longer works for your lifestyle. Remodeling allows you to customize your home and stay in your location — a win-win. However, financing this project can be tricky. The following outlines the process for securing a loan for a custom remodel.

Determine Project Cost

The first step in applying for financing is determining how much you will need to complete the project. Schedule a consultation with a remodeling service to get a quote for the total price of your desired renovations. Make sure the estimate includes the cost of labor as well as materials. Keep in mind that this amount is an estimate and not a guaranteed final price. Supply chain problems may affect the cost of materials. Contractors may discover mold or structural damage during the renovations that must be taken care of before work can proceed. A good rule of thumb is to add an additional 10% to the estimated cost to ensure you have adequate funding.

When determining the total cost of the project, make sure your personal budget can cover the additional costs that arise during a remodel. If you have pets, they may need to be boarded. Depending on the extent of renovations, you and your family might need to live somewhere else temporarily.

Apply for Financing

Once you have a good idea of the total cost of the remodeling project, take a look at your financial situation. Many factors affect the amount of funding you qualify for, including:

  •   Income
  •   Employment status
  •   Credit score
  •   Home equity
  •   Post-remodel home value

Many individuals use their current bank to secure funding for a remodel, and this is often a good place to start. Institutions sometimes offer better rates to existing customers. However, shop around to make sure you are getting the best rate available. If you decide to use a broker, keep in mind that their interests may not align with yours. For example, some lenders pay brokers a finder’s fee that could incentivize a broker to direct you to a company even if the terms are not the best available. Ask for recommendations from people you know when looking for an honest broker.

If you feel a custom home remodel is right for your living space, contact Horizon Construction & Renovations online or call our team at (919) 542-4457 today to schedule a consultation. We will estimate the cost of the project so that you can get started on securing the financing needed to turn your house into your dream home.