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Remodeling a closet can be a great way to get organized while getting rid of clutter. But creating an inviting, functional space takes more than just extra hangers or storage boxes. When planning a closet model, you’ll want to keep a few things in mind, including what you intend on storing there, how much space you have, and your budget.

Ready to roll up your sleeves? Use this guide to help you get started.

Clear Out the Closet

If you can, start a remodeling project with a blank slate. In this case, that means clearing out whatever is in your closet now. You’ll appreciate the extra breathing room when it comes time to measure the space (more on that in a minute). Plus, you’ll have a chance to see exactly what will be stored in the closet after the remodel, which will help you determine what clothing rods, drawers, storage bins, and containers might be needed.

Recommended: How Much Does It Cost to Remodel or Renovate a House?

Size Up Your Space

Accurately measure the size of the closet and, if desired, see what potential extra space exists. The following tools can help you get the job done:

•   Measuring tool: This can be a 25-foot flat tape measure or, if preferred and needed, an electronic measuring tool. The latter can measure longer walls.

•   Acrylic square finders (two): With these, verify whether closet corners are actually square.

•   Angle finders for closets with slanted ceilings: This allows the angle of the roofline to be properly measured.

•   Paper: Record all numbers; graph paper can be especially helpful when sketching out measurements and closet remodel ideas.

New to measuring? Here are some tips to help you get the right figures the first time.

•   When doing a hard measurement, round down by the nearest quarter of an inch.

•   When doing soft measurements, round down to the nearest whole number.

•   Measure walls in three places and use the smallest of these measurements: near the top, in the middle, near the bottom.

•   Measure from top to bottom.

•   Check inside corners.

•   Check the angle of pitch for any sloped ceilings.

•   Note and measure any obstacles, which can include light fixtures and switches, trim, and vents.

Consider Closet Features You’d Like

Not sure what to include in your closet remodel? Here are some ideas to get your creative juices flowing.

Add Lighting

From LED lights that shine on specific areas of the closet to illuminated rods and shelves to lights that focus on cabinets, lights are popular closet features.

A Dressing Room

Because not every house has bedrooms with enough square footage for dressing room space, some homeowners are choosing to transform an extra bedroom — or even an underused dining or living room — into a walk-in closet/dressing room.

These rooms typically have some kind of seating and mirrors, and even pieces of art. They can range from reasonably simple rooms containing a makeup table and comfy seat to luxurious spaces.

Walls That Wow

People who have a more straightforward paint color or wallpaper pattern in their rooms are sometimes willing to experiment with bolder hues or eye-catching patterns on the walls in their closets.

Stylish Extras

If your budget and lifestyle allow, here are some features that are in demand today and may be worth considering. Some are DIY, while others may require the help of a contractor.

•   Ventilation systems to remove smells and dehumidifiers to remove moisture

•   Entire walls devoted to shoes

•   Crown molding

•   A sliding ladder

•   Built-in drawers, called cellarets, to keep socks, ties, and more well organized

•   Laundry cabinet storage with a removable liner to carry the load to the washer

•   Jewelry organizer with multiple compartments, some with locks

Closet Remodel No-Nos

The best remodel is one that allows you to make the most of your closet. As you’re making your plans, be mindful to avoid the following:

Dead Space

People often waste space above the top shelf in their closets. It’s true that you can fold and store clothes on that shelf, or use the space for storing boxes. But keep in mind that the higher an item is, the more difficult it is to access.

Wasted Space Behind Swing-in Doors

If possible, try to avoid closet doors that swing in, because shelves can’t be built there and clothes hung there will continually be banged into. But if this is your setup, fear not. The space can still be salvaged by the addition of a hook board where scarves, ties, and other thin objects can be placed.

Shallow Shelving

When shelves are too shallow, clothes hang over top of them and the closet can look sloppy. Lots of closet systems have 12-inch shelves; make sure this is deep enough for your needs or choose other shelving with more depth.

What Will a Closet Remodel Cost?

On average, a closet renovation costs around $358, according to the home services website Thumbtack.
A good rule of thumb is that the cost per linear foot is $125. Add-ons will affect the cost. Here are some amounts that someone might expect to spend:

•   Professional organization services: $40 to $60 an hour

•   New lights and outlets: $55 to $65 an hour

•   New door: $180

•   Paint job: $200

Designing a custom closet costs between $1,059 and $3,068 on average, according to HomeAdvisor.com. The materials used, organization elements included, permits, and whether a wardrobe is added affect the pricing. Of course, if you’re looking to sell a home, a custom closet design may be of more value to a buyer than an off-the-shelf closet organizing product.

Another factor is whether the closet is a reach-in or walk-in type. Reach-in closets are typically smaller, but when organized well can be functional. These closet remodels can cost between $500 and $2,500 and are often found in smaller bedrooms and hallways.

Or, if you’ve been watching TV remodel shows and are longing for the walk-in closets created there, this type may cost more, while offering plenty of room for clothing and accessories and a good view of what’s located where.
When it comes to paying for a closet remodel, homeowners have several options. Examples include using your personal savings, using a credit card and then paying the balance in full when it’s due, or taking out a unsecured personal loan.

Recommended: 11 Types of Personal Loans & Their Differences

The Takeaway

A closet remodel can range from practical to astounding, suitable to luxe. Take measure of exactly what you want — first deciding whether to expand the space or enhance what you have — and then carve out a budget for that vision.

If you’re ready to roll up your sleeves and get some home repairs or renovations done, see what a SoFi personal loan can offer. With a SoFi Home Improvement Loan, you can borrow between $5,000 to $100,000 as an unsecured personal loan, meaning you don’t use your home as collateral and no appraisal is required. Our rates are competitive, and the whole process is easy and speedy.

Turn your home into your dream house with a SoFi Home Improvement Loan.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Whether your current shower is outdated or too small, remodeling it can improve your everyday routine, give your bathroom a high-end look, and increase the value of your home. The question is, how much will it cost?

Prices vary depending on the amount of work involved and the finishes you choose, but you can expect to pay anywhere from $3,100 and $10,100 for a shower remodel. Here’s a closer look at the specific costs involved, some ways to save money on a shower remodel, plus how to get started.

The Process to Remodel a Shower

The first decision you’ll need to make is whether you’re going to hire a professional or do the remodel yourself. If you have experience with home remodeling, you could potentially save a lot of money by taking on the job, since labor can make up as much as 50% of your total remodel costs. However, if this is your first remodel, you could end up spending a lot more fixing your mistakes.

Once you determine if you’re going to hire a professional or not, you’ll need to come up with shower remodel ideas, including the color scheme, shape, shower type (full or shower-tub combo), fixtures you’re going to get, lights, fans or radios you’ll install, and any doors you’ll replace.

If you aren’t sure how to design your new shower, you can ask your contractor for help or hire a designer, but this will add to your costs.

Once you have an idea of what you want to do, your contractor will come up with a plan for your shower remodel and give you an estimate for materials and labor. You can work with them to see if there are cheaper alternatives, like shopping for materials online or choosing less expensive fixtures and finishes.

If you’re going the DIY route, you’ll have to shop around for the materials and pick them up. You’ll also need tools, such as a safety mask and goggles, tape measure, spackle knife, power drill, extension cord, hammer, and stud finder, just to name a few.

An easy way to DIY a shower remodel is to shop for a complete shower system that includes coordinating fixtures. After removing the existing shower walls, flooring, and fixtures, the new materials can be installed. You might choose an all-in-one shower surround, or a shower pan (the base) with tiled walls.

Recommended: 10 Small Bathroom Remodel Ideas

How Much Does it Cost to Remodel a Shower?

Typically, it can cost from $3,100 to $10,100 to remodel a shower, with the average cost coming in around $6,500. Your actual costs will depend on how large the shower is, what kinds of fixtures you’re installing, and the finishes you’re using. Here’s a look at some of the factors that affect the cost of a shower remodel.

Shower Type

A walk-in shower adds a high-end look to a bathroom and is easy to get in and out of. With this option, there’s a lot of wiggle room on budget — you could spend as little as $400 or as much as $8,500 depending on the materials you choose.

You might be able to spend less if you go with a prefabricated shower, which comes with the entire shower surround and fixtures. You can find prefabricated shower inserts in a variety of styles and price points and spend anywhere from $200 to $8,000.

A tub-and-shower combination is one of the most popular choices, since they use up less space than having a separate shower and bathtub. You can also customize the look with your tile and fixture choices. On average, a tub-and-shower combo runs around $3,000.

Recommended: 8 Bathroom Trends You Should See

How to Save Money on Your Shower Remodel

The costs involved in remodeling a shower can add up quickly. And once you get into the project, there is always the potential for unwanted — and expensive — surprises. Fortunately, there are ways to keep costs in check while still ending up with a clean, updated look. Here are some to consider.

•  Maintaining the layout If you use the current layout, you won’t need to make changes to the plumbing and electrical. This cuts costs, as well as the chance for costly surprises.

•  Keeping the same drywall If the drywall behind your shower is in good shape, you may be able to avoid tearing it out and starting fresh. If there is some damage, your contractor may be able to simply replace those sections rather than tear the entire wall out.

•  Saving your tub If your bathtub is in decent shape, you might simply give your shower a face-lift by changing the surrounding tile and shower fixtures and reglazing the tub to match.

•  Buying a prefab shower These units can cost significantly less than a custom build and are now available in a range of designs that look luxurious and don’t scream “prefab.”

Recommended: Renovation vs. Remodel: What’s the Difference?

Make Your Shower Remodel a Possibility With SoFi

If you’re eager to remodel your shower but don’t have funds to cover the cost up front, you may be able to finance the project using a home improvement loan.

A home improvement loan is essentially a personal loan used to pay for home upgrades and renovations. These loans are available through banks, online lenders, and credit unions, and are typically unsecured (meaning you don’t have to provide collateral). Once approved, you receive a lump sum of cash up front you can then use to cover the cost of remodeling your shower. You repay the loan (plus interest) in regular installments over the term of the loan, which can range from five to seven years.

If you think a personal loan might be a good choice for your shower remodel, SoFi ccould help. SoFi’s home improvement loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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We humans like to take the easy road. We might notice the healthiest options on the menu, then order the fried everything. Or stare down a mountain of bills, then continue the same spending habits.

So how do we snap ourselves out of it? Committing to reducing debt can be kind of like committing to a healthier lifestyle. Because if you think about it, it is a healthier lifestyle.

But just like a diet probably won’t reduce your waistline overnight, a debt management plan isn’t likely to work magic on your finances right off the bat. If you tailor your plan to fit your life, however, it’s possible to see long-lasting changes.

Creating a Debt Management Plan

Laying Out Your Debt

You probably have questions. What is a debt-management plan? Simply put, it’s a way to get control over your debt. Does a debt-management plan work? That answer is up to you.

The first step toward defeating your debt could be to lay it all out on the table, and we mean ALL of it. The average total household debt in America, including credit cards, mortgages, car payments, and everything else, hovered at $101,915 in 2022, according to Experian. For some, that total number could be a real slap in the face. (It’s okay to ugly cry.)

One way to get to your total debt amount is to gather every statement, every bill, and every outstanding balance and input them all in one place, such as a spreadsheet or a spending tracker.

You might be painfully aware of your major debts. But are there others that could be slipping beneath the radar? Potential one-off or occasional debts can include financed household purchases, medical bills, or quarterly insurance payments.

One helpful way to make sure you’re looking at all your debts could be to scroll through your bank statements to look for recurring payments, especially if they’re set up on auto-pay. Another is to compare your list of debts to your credit report.

Categorizing and Conquering

Next, you may want to break it down even more by categorizing and prioritizing your debts. Generally speaking, there are two types of debt: secured and unsecured.

Secured debt includes things like mortgages and car payments that are tied to a physical asset. Unsecured debt isn’t tied to anything tangible, so it can include most credit cards and other types of loans.

Beyond that, you can group your debt by categories, such as high-interest, low- or zero-interest, fixed-rate, variable-rate, or even large balances and small balances.

As you start to list your debts, you could consider common elements such as each creditor’s name, the total balance, your monthly payment, the interest rate, and the expiration date for any promotional interest rates. For an added layer of insight, you could use a credit card interest calculator to understand how much total interest each might incur over time.

It might also be a smart move to prioritize your debt, putting those that could send you tumbling into the bad-credit abyss if you get behind on payments. For homeowners, that could be the mortgage. For commuters, car payments and insurance could be high on the list as well. You could ask yourself which of your debts absolutely must, without fail, be paid on time and in full each month, and put them at the top.

Putting Your Debt in Context

The final piece to your financial puzzle could be to look at your debt in context with the rest of your expenses, such as monthly bills, the grocery budget, gas, and retirement contributions, as well as your monthly take-home income.

Seeing everything together can help give you a solid feel for how much you’re spending (or overspending), and how much you can reasonably start to budget toward debt repayment. And remember that even if it’s only a few dollars to start, it’s still a start.

Picking the Right Debt-Management Plan

Financial gurus have developed a number of methods for getting out of debt, and have even given them fun names that can read like the financial version of A Song of Ice and Fire.

The Snowball, the Avalanche, and the Fireball

The snowball method: This strategy calls for paying the minimum on all your debts, but putting extra toward the smallest balance first. When that’s paid off, you could apply that entire payment to the next-smallest balance on top of the minimum. It’s one way to help get some quick wins and start to check balances off your list.

The avalanche method: This one is similar but focuses on interest rates instead of total balances. With the avalanche, you would pay the minimum on all your other debts but put extra toward the highest interest rate first and work your way down. This could work to save money on interest in the long run.

The fireball: This strategy is a mix of the others, and works for some by separating debt into “good” — which is generally considered to be fixed-payment, low-interest debt that’s on a set repayment schedule — and “bad” — such as credit cards and other unsecured loans. Then, using either the snowball or the avalanche, you could start burning through the “bad” debt first.

One way to narrow your choice is to research the pros and cons of all three methods, then pick the one that fits your style and personality. Or, since we’re talking DIY debt management, you could also pick the parts you like from each one and make it your own.

Once again, it’s kind of like physical fitness: Some people may struggle to lose weight because they haven’t found a diet their body likes. But once they make that connection, they might find it a lot easier to crush their goals.

And speaking of goals, they apply to your debt-management plan, too. You might want to plan a strategy that speaks not only to you, but to your endgame. Are you hoping to save enough to afford an electric car? Will you need to pay for daycare in nine months or so? At the end of the day, you can think about your debt payoff strategy as a way to get you where you want to go, when you want to get there.

The Snowflake Method

Another approach to consider is the “snowflake method,” which works by throwing any additional money that comes your way toward debt, including work bonuses, side-hustle income, or selling things you no longer need or use.

The snowflake’s stricter cousin, the “spending fast,” takes the concept a step further by encouraging users to live as austerely as possible. Instead of eating dinner out, for example, you could cook at home and put aside the money you would’ve spent toward debt payoff. Coffee shop stops? Nope. Make your own and put that $5 toward debt instead.

These two methods could either work on their own or as tactics to complement one of the larger strategies.

Consolidating Your Debt

Paying fees for late payments or overdrafts doesn’t help anything when the goal is reducing debt. If you find it difficult to keep track of what’s due when, combining all your separate payments into one credit card consolidation loan could be a way to focus on one monthly payment.

Consolidating your credit card debt might also include a number of other benefits, but it isn’t a magic cure-all. A loan will not erase your debt, but it might help you get to a fixed monthly payment and reduced interest rates.

It’s important to compare rates and understand how a new loan could pay off in the long run. If your monthly payment is lower because the loan term is longer, for example, it might not be a good strategy, because it means you may be making more interest payments and therefore paying more over the life of the loan.

Keeping Yourself on Track

The best strategy in the world may not lead to progress if you lose track of it after a few months. One way to stay on the right track could be to set up a bill payment calendar to remind you of what’s due when. You could write it down with old-fashioned pen and paper, or use something like SoFi Relay spending tracker for notifications and easy digital payment options.

If willpower is your challenge, you might want to consider enlisting the help of a debt buddy to help get you through the rough spots. It could be a trusted friend or family member who’s been in your shoes and succeeded. You could schedule regular check-ins, and maybe even challenge each other to a debt-payoff duel to spark a little competition.

Another option is to identify your weaknesses and put barriers in place that could save you from yourself. For example, if you tend to make in-app purchases to level up on phone games, you could block them.

Reducing debt is a big deal. And even if it takes years to reach your ultimate goal, be patient with yourself — and be sure to celebrate milestones along the way.

The Takeaway

When you’re creating a debt management plan, it helps to first lay out everything you owe. Next, you may want to categorize and prioritize all of your debts before selecting a debt management plan. Some options include the snowball method, the avalanche method, the fireball method, and the snowflake method. Another strategy is to combine all separate debts into one consolidation loan. While this won’t erase your debt, it could help you get to a fixed monthly payment and, potentially, reduced interest rates.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Debts fall into two broad categories: secured debt and unsecured debt. Though both types of debt share some similarities, there is one key difference. Secured debt is backed by collateral, and unsecured debt isn’t.

It’s important for borrowers to understand how secured and unsecured debt work. That’s because the type of debt you choose could impact such things as loan terms and interest rate and whether you can get credit, and can be one tool to help you determine the order in which you’ll repay the debt.

What Is Secured Debt?

Secured debts are backed, or secured, by an asset, such as your house. This asset acts as collateral for the debt, and your lender is what is known as the lien holder. If you default on a secured debt, the lien gives your lender the right to seize the asset and sell it to settle your debt.

Mortgages and auto loans are two common types of secured debt. A mortgage loan is secured by the house, and an auto loan is secured by the vehicle. You may also encounter title loans, which allow you to use the title of your vehicle to secure other loans once you own a car outright.

What Are the Possible Benefits of Secured Loans?

Because lenders can seize an asset to pay off the debt, secured loans are considered less risky for the lender than unsecured loans. “Low risk” for a lender can translate into benefits for borrowers. Secured loans generally offer better financing terms, such as lower interest rates.

Secured loans may also be easier for borrowers to qualify for. For example, secured loans may have less stringent requirements for credit score compared to unsecured loans, which generally rely more on the actual credit and income profile of the customer.

What Are the Stakes?

The stakes for borrowers can be pretty high for secured loans. After all, consider what happens if you stop paying these debts. (Timeframes for secured loan default can vary depending upon the type of secured debt and lender terms.) The bank can seize the secured asset, which might be the house you live in or the car you need to drive your kids to school or yourself to work.

Failing to pay your debt, or even paying it late, can possibly have a negative effect on your credit score and your ability to secure future credit, at least in the shorter term.

What Is Unsecured Debt?

Unsecured debt is not backed up by collateral. Lenders do not generally have the right to seize your assets to pay off unsecured debt. Examples of unsecured debt include credit cards, student loans, and some personal loans.

What Are Some Benefits of Unsecured Loans?

Unsecured loans can be less risky for borrowers because failing to pay them off does not usually result in your lender seizing important assets.

Unsecured loans often offer some flexibility, while secured loans can require that you use the money you borrow for very specific purposes, like buying a house or a car. With the exception of student loans, unsecured debt often allows you to use the money you borrow at your discretion.

You can buy whatever you want on a credit card, and you can use personal loans for almost any personal expense, including home renovations, buying a boat, or even paying off other debts.

What Are the Stakes?

Though unsecured loans are less risky in some ways for borrowers, they are more risky for lenders. As a result, unsecured loans typically carry higher interest rates in comparison.

Even though these loans aren’t backed by an asset, missing payments can still have some pretty serious ramifications. First, as with secured loans, missed payments can negatively impact your credit score. A delinquent or default credit reporting can make it harder to secure additional loans, at least in the near future.

Not only that but if a borrower fails to pay off the unsecured debt, the lender may hire a collections agency to help them recover it. The collections agency may hound the borrower until arrangements to pay are made.

If that doesn’t work, the lender can take the borrower to court and ask to have wages garnished or, in some extreme cases, may even put a lien on an asset until the debt is paid off.

Managing Secured and Unsecured Debt

Knowing whether a loan is secured or unsecured is one tool to help you figure out how to prioritize paying off your debt. If you’ve got some extra cash and want to make additional payments, there are a number of strategies for paying down your debt.

You might consider prioritizing your unsecured debt. The relatively higher interest typically associated with these debts can make them harder to pay off and could end up costing you more money in the long run. In this case, you might consider a budgeting strategy like the avalanche method to tackle your debts, whereby you’d direct extra payments toward your highest-interest rate debt first. (Be sure you have enough money to make at least minimum payments on all your debts before you start making extra payments on any one debt, of course.)

You can also manage your high-interest debt by consolidating it under one personal loan. A personal loan can be used to pay off many other debts, leaving the borrower with only one loan — ideally at a lower interest rate. Shop around at different lenders for the best rate and terms you can find.

Be cautious of personal loans that offer extended repayment terms. These loans lengthen the period of time over which you pay off your loan and may seem attractive through lower monthly payment options. However, choosing a longer term likely means you’ll end up paying more in interest over time.

The Takeaway

Secured debt is backed up by collateral, such as a house. Unsecured debt doesn’t require collateral. The type of debt a borrower chooses may impact things like the cost of a loan and whether they can get credit. It can also help determine the order in which debt is repaid. Since unsecured loans could have higher interest rates or fees, you may decide to consider prioritizing paying down that debt first. A budgeting strategy like the avalanche method may make sense, as it calls for directing extra payments toward highest-interest rate debt first. Consolidating high-interest debt under one personal loan, ideally at a lower interest rate, is another strategy.

If you are thinking about taking out a loan to consolidate your debt, a SoFi unsecured personal loan could be a good option for your unique financial situation. SoFi personal loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Whether you’re thinking about a small bump-out or a full-blown two-story addition, increasing the size of your home can make it more functional, look more attractive, and increase its resale value. The trouble is, additions tend to be big, time-consuming, and expensive projects — and they can easily go wrong if you don’t plan them right. Read on to learn six key steps that will help you complete an addition on time, on budget, and with the least possible amount of stress.

How to get started with a home addition

Home additions can boost the value of the home while enhancing aesthetics and functionality. In fact, home additions and renovations can be among the most effective ways to increase your home’s value, and you can tailor the construction to fit your needs and wants.

To transform your home addition ideas into a completed project, there are a few steps to consider first:

•  Create a plan

•  Set a clear budget

•  Work with trusted professionals

•  Decide what parts of your home addition you can do yourself

•  Research and obtain permits

•  Fund your project

Create a Plan for Your Home Addition

Perhaps you’re adding an extra bedroom and bathroom to the back of your house so you have a place for guests to stay. As part of the process, you’ll need to first make sure that the addition will fit within your property lines. You’ll also want to check with your local government to see how closely codes in your city allow you to build next to someone else’s property.

While creating your home addition plan, also ensure that any construction will not interfere with utility lines or pipes, as well as whether the structural changes you’re considering will fit into the framing and foundation of your building.

As you design the addition, think about them from two perspectives: first, how these rooms will add value to your living space; then, how the construction will impact the outside of your home, architecturally speaking.

You’ll also need detailed plans drawn up by an architect or builder that describe the scope of the work and the materials needed. To consider how home additions may increase the value of your home, you may want to use an online home project return on investment (ROI) calculator.

One strategy for approaching home additions is to create your dream list, then have alternate choices in mind if your budget, material availability, or other external factors create a need to alter the project down the road. For example, you may love the look of marble flooring, but its price point might be higher than you’d initially estimated — or perhaps it doesn’t blend in with the rest of your house once you’ve started laying out the plans. Having a back-up plan — and one that’s cost-efficient at that — could help keep your budget in check.

The cost for an addition will depend on the size and type of addition, as well as where you live, but you can expect to pay somewhere in the neighborhood of $150,000 to $250,000 to add 1,000 square feet to a house.

Also keep in mind that if you want your addition to blend in with the rest of your house, you also may need to plan for improvements in existing rooms.

Set a Clear Budget for Your Home Addition

To come up with a budget for your home addition, it’s a good idea to obtain bids from three different contractors, adding in 15% to 20% to the overall project price given by the contractor to cover unforeseen costs.

If the ballpark figure is too high and doesn’t align with your budget, then you might want to look at alternative choices for materials that will still give you the general renovation you desire. You could also scale back on your plans or save some of the more costly home addition projects for the future when your budget allows.

If you intend to work with a specific contractor, then your chosen company may be able to help you find lower-cost options — for example, replacing granite countertops with laminate ones — and offer creative solutions gleaned from years of industry experience. Or, you may want to look at reducing the scope of your project to a smaller addition or even asking the contractor for competitive pricing for the off-season.

Work with Trusted Professionals

Whether you do some of the home addition work yourself or plan to have the professionals build the entire addition, it’s crucial that you hire the right contractor for your needs. Tips for working with contractors include:

•  Get three to six bids, then research companies that seem like good matches. You can check for information about these contractors at LinkedIn, Angie’s List, and the Better Business Bureau . Have any complaints been filed at your state’s contractor board? (You can find state-by-state licensing requirements for contractors here .)

  For contractors who interest you, you may want to reach out to references they provide for personal experiences from past clients.

•  Be wary of suspiciously low bids. If a quote comes in significantly lower than that of the other contractors who bid your home addition project, it’s possible that the contractor did not understand exactly what you want; this can lead to significant problems if you hire this company without clarifying specifics.

•  Hire a contractor who you think you can work well with, but don’t base your decision largely on emotion.

Decide What Parts of Your Home Addition You Can Do Yourself

Say the home addition ideas you have are necessary to solve space problems, perhaps you’re having a baby, or maybe your mother is moving in with you — but you’ve got to find a way to contain the costs of the addition. In this case, it might make sense to figure out what you can do yourself.

If you’ve got the experience needed to do the demo work safely without damaging load-bearing walls, electrical wires, and the like, this can save you some money on labor. If you’ve got professional-level skills in plumbing or drywall, you might talk to your contractor about taking on those tasks yourself and further reducing the cost of labor. Or you can attempt to do the finish work, such as sanding walls, painting, and general cleanup.

Research & Obtain Permitting Requirements

Unfortunately, a home addition isn’t as simple as deciding what you want to do, saving up, then paying for the work. You also need to make sure your home is appropriately zoned for the home addition or remodel. Depending on the scope of the project, you may or may not need a permit.

For example, if you want to build a deck in some states, you need a permit if you intend for it to be more than 30 inches off the ground. Getting to know your local codes can help surmount significant hurdles as the project unfolds, which often will save time and money for homeowners.

Strategically Fund Your Project

To find materials for your home addition on a budget, you could shop at stores like a Habitat for Humanity ReStore , attend auctions, or explore similar options to find salvaged materials. If you’re employing a contractor, however, you’ll want to make sure they are willing to work with recycled materials and ones that may not be standard size.

For a higher-priced project, it might be tempting to use credit cards to pay for expenses. If you’re doing this to maintain a record of your spending or to take advantage of credit card reward points, this can be a good strategy provided you can pay off the balance quickly, ideally within a single billing cycle.

But when you can’t pay off the balances, it can be easy to get caught up in a spiral of debt, and credit card debt is especially challenging. Why?

Credit card interest rates are notoriously high. What’s more, credit card companies typically compound daily, which means they calculate the interest you owe daily and add that to the card’s balance. You then pay interest on your balance, plus any accrued interest, until you pay your balance off in full.

Getting a Home Improvement Loan for Your Home Addition

If you don’t have enough cash to pay for your addition in full and up front, and don’t want to run up credit card debt, you might consider getting a home improvement loan. This is essentially an unsecured personal loan that is used for home upgrades and renovations. Unlike a home equity loan or line of credit, you don’t need to have any equity built up in your home, or use your home as collateral for the loan.

With a home improvement loan, you receive a lump sum up front which you can use to pay for your addition; you then repay the loan over a set term, often five to seven years, with regular monthly payments. Interest rates are typically fixed.

The Takeaway

A home addition can increase the value of your property while also allowing you to retrofit your house to your current lifestyle. There are many factors that figure into a big decision like a renovation, and it’s important to consider it from as many angles as possible.

If you’re interested in getting a loan to finance your home addition project, SoFi could help. SoFi’s home improvement loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

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