Bought a fixer upper? Or perhaps you just want to update your space—whatever it is, many individuals opt for home renovation loans to help with their finances. If you purchased a warranty from home warranty companies, you may be able to get a discounted repair or replacement service on certain items that need fixing. Otherwise, applying for a renovation debt consolidation loan or home renovation loans will be your best bet to help you out while you work on your space. However, it’s important to know all of the details before you decide which home renovation loan to take out—here are 4 common mistakes people make in the decision:

1. Not doing research

The good news is, if you’re reading this article, you’re probably already on your way to a well-researched decision! However, many people jump right in without taking the time to do their research and look into home renovation loans—this is a big mistake.

2. Not shopping around

Hand-in-hand with not researching, if you don’t shop around before deciding on a home renovation loan, you probably won’t end up with the best outcome. You want to make sure you choose the right lender to fit your situation, especially since renovation loans are significantly more specialized than other loan types. Shopping around will give you the confidence you need from your loan.

3. Not getting the right financing

When it comes to a home renovation project, there are many financing options available to support you. Some loans exist solely to finance home improvement projects, whereas standard loans give you cash to use for home renovations. To choose the right one for you, compare loan types, rates, and terms—you’ll be sure to find the best offer with thorough research.

4. Not planning ahead

Home renovation loans are more complex than a car loan or a personal loan—you likely won’t get everything set in the same day. You’ll need to plan ahead and gather all the information you’ll need to share, such as detailed specifications and plans. You may also need a home appraisal, and between all of the details, your planning cannot wait until the last second. Be prepared and plan ahead of time to make sure everything goes smoothly!

When deciding which home renovation loan to take out, be sure to avoid these mistakes so you can make informed decisions that work best for your needs. Start by conducting thorough research, shop around for the right lender, select the right financing option for you, and plan, plan, plan! By avoiding these mistakes, you can embark on your renovation journey with confidence and financial stability.