Are you thinking about making home improvements or planning your next renovation project? You may want to consider using the equity in your home to finance a remodel.
Jill Salter, a mortgage banker based out of Brandon, is passionate about helping homeowners use their home equity to fulfill other financial goals, such as remodeling projects.
In the below Q&A, Jill shares tips for financing your home improvements and outlines how our team can help homeowners through the process.
Find out what she had to say, and reach out to Jill when you’re ready to take the next step!
Before we get into the fine details of using home equity for a remodel, tell us a little bit about yourself.
I’ve worked in banking for just shy of 25 years, with 12 of those years dedicated to mortgage lending. My other banking experience includes compliance and personal banking.
I attended Northern State University and later went on to study at the Mortgage Bankers Association’s School of Loan Origination. What I enjoy most about my job is that every customer relationship is unique, and it’s fulfilling to be able to assist all levels of homeownership needs.
My time outside of the office is consumed by attending kids’ activities. My husband, Craig, and I have two daughters.
You can typically find me in a gym watching Gracie play basketball or at a soccer field supporting Quinn. Also, I find it rewarding to be able to volunteer with their school and travel teams!
What are a few reasons why homeowners might consider remodeling?
Those looking to increase their property value and update the design or style of the home may consider remodeling.
If there’s been a change to your family and you’d like to improve the functionality of your space, such as adding an additional bathroom for the kids, then a home remodel can help you accomplish that.
Also, depending on the age of your home, you might consider a remodel for maintenance reasons or to make the house more energy efficient.
What is home equity, and what can homeowners use it for?
Home equity is your property value minus the amount owed on your home.
You can use your home equity to finance large projects that can add value to your home, such as a home remodel or addition. Furthermore, home equity loans can help cover debt consolidation or other expenses.
First National Bank offers multiple options for home equity loans, so we can find something that fits your needs.
We can also look at a cash-out refinance to use your equity as well. We’ll compare costs, rates, terms, and fees for you to ensure you get into the best product available to achieve your goals.
When using home equity for a remodel, what should homeowners know prior to starting the process?
First, you should meet with a mortgage banker to discuss financing options for the project.
A home equity loan from First National Bank is a great option for financing home improvement projects, and I enjoy being creative in helping customers use the equity in their home for “wish lists” they may have!
Lastly, homeowners should create a budget and obtain proper permits before jumping into the remodeling process.
What are the most common mistakes you see homeowners make when using home equity for a remodel?
- When assisting customers with using their home equity for renovation projects, I see some underestimate their costs and, in turn, run out of funds.
- Another common mistake is not hiring a professional, which can often cause some heartburn. HGTV makes home renovation projects look easy, but it’s always best to leave certain things to the experts.
What advice would you give to prepare homeowners for a home remodel?
- Do your research, and get multiple quotes for your projects. That way you can compare costs and create a budget.
- Reach out or stop in and visit with me about financing options before you start. If you have equity in your home to use, we can discuss options to reach your remodeling goals.
Do you have any personal experience to share from your own remodeling projects?
I’ve found that doing as much of the demolition work yourself, although not glamorous, can be a budget saver.
When I replaced the 10-year-old carpet in my house, it took multiple nights of crawling around on my knees to pull up the millions of staples!
What are considerations for homeowners when deciding whether to buy a new home or renovate their current home to fit their needs?
If you’re debating between buying a new home or remodeling your existing home, one key question to ask yourself is: How long do I intend to live there?
If you plan to stay put for the long haul, then remodeling your current space may be the better choice, financially speaking. Depending on the scope of your remodeling project, renovations can bring a return on your investment if you do opt to sell later on.
When it comes to renovation projects, what updates can homeowners consider for adding the most value to their homes?
To determine what improvements might add the most value to your space, I would advise reaching out to your real estate agent.
Typically, kitchen and bathroom renovations are the costliest but are two areas that homebuyers like to see updated.
On the flip side, cosmetic updates like painting rooms and replacing fixtures won’t make much of a change to your home’s value. These are great options to create new looks or refresh your space, so if you’re considering these updates then it’s best to choose high-quality and durable options that are budget-friendly.
What resources would you recommend to homeowners before and during the remodeling process?
Before starting the project, contact your mortgage banker to determine how much equity you have available and what you can qualify for.
Once funding is in place, I would recommend using online budgeting apps to stay on track.
And, if you’re looking for design ideas for your space, sites like Houzz or Pinterest can be a great resource to spark inspiration.
If you want to get to know Jill Salter better or determine if she’s the right mortgage banker for you, learn more here. And to start your remodeling journey, give her a call at (605) 782-5966 or 800-339-1160, or reach out.
NMLS ID: 514754
