If you’ve had your unit for 10+ years, you should start thinking about replacing your current AC unit if it is approaching the end of its expected service life, has become unreliable or its efficiency is dropping rapidly. Planning to replace the AC requires a budget, and coming up with a budget for this project is often difficult for many homeowners. Here are some suggestions on the budgeting process provided by the HVAC professionals at Clarke & Rush, the best Sacramento HVAC company. This information will help you to create a realistic budget for this major home improvement project.
Determine the Right System for Your Home
The first step when creating a budget for your AC replacement project is asking an AC replacement expert in Sacramento to assess your home and recommend the most appropriate AC system for that property. For example, the technician can consider the home insulation improvements that you made and the additional electrical appliances which you have installed over the years to recommend a bigger unit to account for the added generation of heat, for example. Once you know the type and size of the system, it is easy for the HVAC contractor in Sacramento to give you a rough range of what that system will cost, plus labor and any other incidentals.
How Much Can You Allocate to the Project?
The amount of money that you can invest in a new HVAC unit will depend on several factors, such as what is left when you spend on other necessities (mortgage, transportation, food, etc.). You should avoid a situation in which you end up spending much more than you can afford on a new AC unit since this can throw your finances out of whack for years to come.
Think About Your Home Equity
Many Sacramento homeowners that HVAC replacement technicians work with finance their purchase of the AC themselves. These people use the equity in their homes as a basis for financing the project. Are you thinking along the same lines? Compare the outstanding balance on the home mortgage to the current market value of that property. The net difference will give you how much equity you have in the home. Technicians at Clarke & Rush, the best Sacramento HVAC company, say that homeowners with sizable home equity attract the best lenders, so make sure that you will not find it difficult to secure financing using the equity in your home.
Check Your Credit Rating
Financial institutions use complex algorithms to attach a value to the credit rating of a potential borrower. Some of the factors they rely on to rate your credit worthiness is your loan repayment history, your current level of indebtedness and your current income. The higher your credit rating, the easier it will be for you to get financing at the best terms. You might want to rethink the timing of your AC purchase decision if your credit rating is low and lenders are shying away from you.
Clarify Your Needs and Preferences
AC replacement professionals in Sacramento explain that one of the biggest factors affecting the budget of homeowners who wish to acquire a new AC are the needs or preferences of those individuals. For example, some people may be comfortable with a no-frills model while others want a unit with all the bells and whistles available. Also, some homeowners are ardent believers in certain brands (which may be more expensive) while others are flexible regarding the AC brand they buy. Such preferences can inflate or keep the budget affordable. It therefore helps to be upfront and reveal your preferences to the HVAC replacement technician you hire so that all decisions are made with those considerations in mind.
As you can see, creating a budget for your AC unit replacement isn’t something that can be done in a hurry. Use all the resources available to you, such as an experienced technician from Clarke & Rush, online AC cost calculators and any other professional advice you can get so that the budget you develop is realistic and manageable. At Clarke & Rush, we understand the complexities of AC unit replacement projects and we gladly help homeowners in Sacramento to navigate this process and come out on top. Give us a call today!