There are two key items that affect the home remodeling market: first, the overall stability of the home buying market and secondly, the credit standards banks apply to lending. We have seen over the last year and a half that our local market in San Antonio continues to be the oddball in comparison to the rest of the country. This can be attributed to a few things, but most importantly, you can identify our housing stock as stable and not over-valued. Texas, and San Antonio in particular, have steady home values that reflect strong home ownership and remodeling success.
A homeowner has two choices. They can either upgrade and buy a new home or remodel and upgrade the home they are currently living in. The credit crisis over the last few years has really limited the home buying options and made the ability to find good credit and cheap interest rates difficult. However, we are seeing San Antonio on the home improvement rebound and it is quickly becoming a “buyer’s market“. Here are a few steps to think about when the time comes to look for your credit options:
- Do you have an established, long term relationship with your current banking institution? If so, what kind of financing products do they offer? What are their rates and basic terms?
- It is always best to examine who a home remodeling company partners with for financing. At Liberty Builders of Texas, we have a 20 year relationship with San Antonio Federal Credit Union and a strong partnership with Wells Fargo. Both are trusted names in the lending industry. If you are shopping and use a contractor’s financing source, always examine who they are and how they treat their customers!
- Find lending terms that don’t penalize early payoff and always examine the interest rate and term. Too often, a customer will be more worried about the rate and pay too much in the longer term financing. Always look for a good combination that fits your personal financial needs.
- Examine the long term cost of credit. Read the fine print and determine how much it costs over the life of any loan. While it is a startling number sometimes, it will help you realize that although a payment is low, over the longer term you pay more. It will also help encourage you to pay off your loan faster!
Buying a home takes a lot of time and paperwork. If your choice is to purchase a new home, then be prepared for the time and energy input to make it happen. If you like your home, want to stay, but aren’t sure how you can update or upgrade, reach out to a home improvement specialist and find out how you can “stay home” and upgrade what you currently have.