One of the key barriers to bathroom remodeling isn’t just the ability to be to “afford” a renovation project. Even if they do have these kinds of funds, most homeowners don’t have 10, 20, 40 thousand dollars lying around in a readily accessible account. A lot of people, even those with the means for an upscale project, end up financing their remodel. Much like getting a home mortgage and buying a home, you’ll need to convince a bathroom remodeling company that you have reliable and timely financing.
To this end, there are numerous ways to finance this kind of project. Many major remodeling companies maintain their own sources of consumer credit for prospective customers. One of the best ways to finance a bathroom remodel is with a home equity line of credit (HELOC). This type of loan can be complicated and time-consuming to get. That’s why most home improvement pros will tell you to do this beforehand—again, this isn’t unlike getting preapproved for a home loan. Just because you can’t get—or don’t have—a HELOC, this doesn’t mean all hope is lost.
In fact, because this is becoming such a common occurrence, some banking institutions are stepping up to fill this credit gap. Most notably, Goldman Sachs which typically avoids consumer lending programs has recently initiated exactly this type of program, according to CBS News. With interest rates that are slightly higher than HELOC loans but lower than credit cards and other unsecured credit programs, this may be the best available solution.
One of the reasons why timely financing may become increasingly important is the shortage of qualified home improvement contractors—an issue that’s only going to get worse over the next few years as home builders increase their staff and snatch up much of the skilled workers in the home construction industry. If you have a highly respected bathroom remodeler who’s quoting you a fair price, you may not want to slip off the contractor’s schedule because of a financing problem. Indeed, this seems to be the exact angle that Goldman Sachs is taking in marketing this credit program for bathroom remodels and other home improvement projects.