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Improving Your Home?
Tips for Saving Money and Avoiding Rip-offs By Remar Sutton, DCU StreetWise National Spokesperson 
When the weather warms up, a homeowner's thoughts turn naturally to home improvement. And as sure as the flowers bloom, the thoughts of home improvement service providers – the good, the not-so-good, and the scammers – turn to selling their services and wares to homeowners. How do you get your improvements done right and at the right price? No matter the type and size of your project, it's important to know how to define your project, find appropriate financing, and locate and evaluate the appropriate products and contractors. Step 1: Research Your Project and Budget What's the scope of your project? The more you know about what your specific project entails, the more ably you can evaluate appropriate products and proposed services. Researching the basics required for most projects isn't hard. You'll find multiple reputable web sites cover most types of home improvement projects. For some recommendations, see StreetWise's Online Resources for Homeowners. Here are some questions and points to cover.
Step 2: Shop for Financing before Contractors or Service Providers Larger projects such as remodeling full rooms or making additions to your home typically require a loan. Before you interview potential contractors, look at loan options and terms from your credit union. DCU offers both fixed- rate and variable-rate DCU Home Equity Lines of Credit and fixed-rate DCU Home Equity Loans. Although many remodeling contractors may offer financing directly or through a lender they recommend, such loan offers usually cost more and some may have very unfavorable terms. We recommend that you finance with an independent source such as DCU. If you want to compare terms, get any financing contract offer in writing, don't sign anything, and bring it to DCU's loan department; they'll help you compare terms. For smaller projects, many people put the amount on a credit card or choose the retailer's/installer's financing options without comparing costs. This can be a mistake. Comparing your options can save you big money. Many retail financing offers (e.g., "90 days same as cash" or "open our credit account and save 10%") result in paying higher financing costs. Check all the terms and compare those to terms on your DCU Visa® card or talk to DCU about other financing options. Step 3: Find the Best Contractor/Service Provider Finding a skilled, responsible specialty contractor for a single project (such as painting, roofing, flooring, or tiling) or general contractor for a major remodel may be the most important key to a successful project. These steps can help. Get a recommendation or referral. If you've worked previously with a good contractor, go to them again. Also ask friends, family, co-workers, and neighbors to recommend contractors they have used who did a good job. Check out the contactor's track record. Select the three to five contractors you might like to ask for estimates. Check them out with the Better Business Bureau (or local/state equivalent) or your local or state consumer affairs office. Also determine how long the contractor has been in business and if the business has a permanent address. A longer track record and permanent address tend to represent stability. Select at least three contractors to talk to personally. A face-to-face meeting at the job site is best. Cross contractors off your list if they won't provide references, request the entire payment up front, accept cash only (you should keep a paper trail), want you to get the necessary permits (this could mean they are not registered or licensed), and/or pressure you to sign today. Step 4: Seal the Deal in Writing and Keep an Eye on the Work Be sure the contractor you select provides a written contract. The contract should contain a detailed description of the work and materials to be used, the costs and payment terms, the starting and completion dates, and the contractor's responsibilities. The contract should include all guarantees, warranties, and promises. Make sure you read the contract carefully. For larger projects, have your lawyer check the contract. Once the job starts, don't be an absentee homeowner. Keep a regular eye on the work. If you have questions, ask them. If something doesn't seem quite right, inquire about it. After all, it's your home and your money. Knowledge Is Power! For more information see the StreetWise section on Home Repair and Maintenance for multiple articles and resources. |
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| Digital Federal Credit Union PO Box 9130 Marlborough, MA 01752-9130 508.263.6700 • 800.328.8797 • dcu.org • dcu@dcu.org TTY 800.395.5146 (For hearing impaired only) Have you had a good experience with DCU that you want to share with others? Send us an email at dcu@dcu.org or mail it to: DCU Attn: Marketing Dept. PO Box 9130 Marlborough, MA 01752-9130 |
For direct deposit: routing and transit # ABA 211391825 Editor: James Paquette To apply for a Home Equity Loan, Consumer Loan, or Mortgage anytime, call 508.263.6700 or 800.328.8797 (select 3) or visit dcu.org. For a complete listing of DCU's rates, visit our web site at dcu.org or stop by your nearest DCU branch.  Images may be from one or more of these sources: ©Thinkstock, ©iStock, ©Fotolia. ©2010 Digital Federal Credit Union. |