Buying a new home is exciting! Buying a new home that is also a fixer-upper is exciting and can be stressful. The expenses can stack up quickly when you’re planning to start a remodel immediately. To avoid unpleasant financial jolts, it’s best to reduce as many variables as possible. Here are some things you should know when budgeting to remodel a new house.

What to Look at When Buying a Home

If you want to remodel your house immediately to make it your own, look for a time capsule. You want a structurally solid house that’s trapped in the previous decade. Strange but true – most buyers aren’t able to see beyond orange shag carpet and dark brown paneling from the last century. So lucky you! That looked over house may mean a lower sales price and a lower mortgage loan .

Keep an eye on how much equity you’ll have once you own the house if you need to borrow against it for the remodel. According to Craig Bosse, you should pay attention to what you have left after your down payment: it’s not uncommon to have very little funds after putting down 20 percent on a new home. If the house needs structural work, get an estimate before you make your offer. You’ll want to reduce the offering price if the repairs will be substantial or if you won’t be able to live in the house until the repairs are done.

Get an Estimate of Rehab Costs

Before you buy, according to Invest Four More, you should talk to the contractor who gave you the repair estimate and ask them to do a construction walk through to estimate costs. If the contractor sees major work in your future that include labor and materials spent on the foundation, structure (walls and floors), or roof or mechanicals, electrical, or plumbing then you will need to pay close attention to the issues your house inspector finds.

This home inspection report will include information about structural issues, foundation concerns and major plumbing problems you as the buyer may be facing. They can also tell you about upcoming major expenses that neither the seller nor you knew about. Even if you have to pay for the additional inspection, you can save yourself a lot of expense and heartache with your own inspector.

Plan Ahead and Jump In

Know what you want from the renovation before you sign the mortgage paper. Be fully prepared to get going on the renovation immediately. No matter your ultimate goals with this house, there will be delays and challenges that will pop up for your chosen contractor. The more of the project that you have lined up before you actually own the property, the easier your life will be and the sooner you’ll be in your new home.

You deserve a great house, and often the only option is to buy for location and renovate for your dream space. Work with a contractor you trust and invest in your own inspection. Understand that you may not be able to live in your new house for a time, but the wait will be well worth it.

If you want some help figuring out the best interior designs for your remodel, schedule a consultation with us!