Spring cleaning is underway, school is almost out and it’s the most common time of the year to focus on the home.

For many, warmer weather brings out the to-do list in terms of home improvement projects, while others keep watch over residential real estate listings, knowing inventory will peak during the summer months.

Whether your plan this year is to buy a house, refinance your existing mortgage loan or remodel your home, the financial 4-1-1 for each scenario can help make the process easier and more efficient.

New Homebuyers

The first step in any home search should be to get prequalified for a mortgage loan. Pre-qualification lets prospective homebuyers know how much they can afford; however, buyers don’t need to shop for their maximum home price. With home ownership come other monthly fees such as property taxes, insurance, maintenance, utilities, etc., so those costs should be factored in when considering the budget for a new home.

Applications for loan prequalification can be submitted online, through some banks’ mobile phone apps and certainly by visiting with your bank’s mortgage loan officer. Banks can often provide information on different types of loans, including the features and benefits of specific loan products, down payment information, first-time homebuyer assistance and a lot of other beneficial information – some of which consumers may not be aware of.

Prequalification also provides an advantage in the event two buyers are interested in the same property. Sellers can be inclined to favor a pre-qualified buyer since financing already has been secured.

Refinancing a Mortgage Loan

Refinancing your current home loan can save money in the long run. One of the most common reasons to refinance is to obtain a lower interest rate than your existing loan. Also, refinancing allows consumers to adjust the term or length of the loan.

Since refinancing a loan helps reduce the amount of interest paid on the balance of the loan, it’s important to consider where you stand in the life of the loan. For example, are you five years into a 30-year mortgage, or are you at the point in your loan where you are paying mostly principal?

Financing a Remodel

Homeowners who choose to reinvest some love and updates in their existing home can do so by utilizing the equity in their home, instead of having to save or spend cash out-of-pocket.

Home equity provides two options for remodeling, or purchasing a big-ticket item such as boats, cars, college tuition, etc.

A home equity loan provides homeowners with a lump sum of cash they pay back with a low fixed interest rate. To be considered for a home equity loan, homeowners should visit with a lender to determine if this option would be a good fit for them and how much they want to borrow against their equity.

A home equity line of credit (HELOC) allows homeowners who have enough equity in their home to borrow, multiple times if desired, against that line of credit that draws from their home equity.

Both borrowing options make financing a major project or expense simple and quick, so homeowners don’t have to touch their savings or emergency fund.