Funding home repairs

[laurenjarrod]

Hi Everyone,

I am closing on my 1st home this Friday. I can't express what a huge accomplishment this is for me, so I am super excited.

The home is generally in move in condition minus a few things that need to be updated. This is the list of items I wanted to do before I move in, as once furniture is there it will make things considerably harder to do. 

1) Paint 3 rooms

2) Change tile floring in 2 rooms to match existing hardwood. 

3) Remove carpeting in 3 bedrooms. There is hardwood underneath but I am sure there will need to be some refinishing needed due to the carpeting. 

4) Change front door. 

I will have about 10K left in my savings after I pay for my down payment/closing costs. 

I don't necessarily want to use my savings, though, to fund these projects. 

I have people coming next week after I close for estimates. 

I was thnking of taking out a personal loan to fund the projects, but not sure if that's a good idea. None of my CC's have a high enough limit to do so ( highest is Discover which is $1,400 only) so that's not really an option. Although it could fund smaller purchases, like painting for example, if it was less than my credit limit. 

[Girlzilla88]

I'm curious to see what people say and Congratulations on your HOME!!       

[Anonymous]

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@laurenjarrod wrote:

I was thnking of taking out a personal loan to fund the projects

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Terrible idea. If you can pay for something just pay for it. Here are some ideas:

1. Call your card issuer beforehand for guidance. They may be able to allow one-off payments. Some issuers will let you prepay and get a negative card balance so you won't exceed your credit limit on the purchase.

2. Ask for a split payment purchase. Pay half in credit, half in cash. Or you can go up to your credit limit, pay off the balance immediately and then make another credit payment.

3. Ask for a cash discount. Everyone wins! Unless they do garbage work and you have to dispute. 

[iced]

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@laurenjarrod wrote:

Hi Everyone,

I am closing on my 1st home this Friday. I can't express what a huge accomplishment this is for me, so I am super excited.

The home is generally in move in condition minus a few things that need to be updated. This is the list of items I wanted to do before I move in, as once furniture is there it will make things considerably harder to do. 

1) Paint 3 rooms

2) Change tile floring in 2 rooms to match existing hardwood. 

3) Remove carpeting in 3 bedrooms. There is hardwood underneath but I am sure there will need to be some refinishing needed due to the carpeting. 

4) Change front door. 

I will have about 10K left in my savings after I pay for my down payment/closing costs. 

I don't necessarily want to use my savings, though, to fund these projects. 

I have people coming next week after I close for estimates. 

I was thnking of taking out a personal loan to fund the projects, but not sure if that's a good idea. None of my CC's have a high enough limit to do so ( highest is Discover which is $1,400 only) so that's not really an option. Although it could fund smaller purchases, like painting for example, if it was less than my credit limit. 

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If they aren't urgent repairs, if I were in this situation I'd stay put until I had the money to fund the improvements/updates or I could land interest rates below 3%. No point paying more for something if I don't need to. I would knock each item out, one at a time, as money became available.

[Schwartzinator]

I agree with Iced.

Don't do what I did. I closed on my first home in late June and had the interior walls painted, carpet changed to matching flooring (which was a pain to find) and remodeled the garage on top of having to buy all new furniture and make some unexpected emergency repairs (roof, AC and water heater). If I could do it over, I'd have started the remodels a bit later.

Luckily between interest on savings, points on purchase and the 3% rate on the balance transfer I've barely paid any interest.