1. Forgetting To Apply for a Building PermitBefore making any structural changes to your home, check with the city or town where you live to find out if your project requires any building permits. Skipping this step could cost you thousands of dollars down the line if you violate a by-law. In some cases, you might even be forced to tear down your work. To learn if building permits are necessary, call or visit your municipality office and ask what the requirements are to proceed with your project.2. Choosing the Cheapest ContractorWhen selecting a contractor for your home renovation, it is important to never go with the first contractor you meet, or the cheapest one. Do your research. Get at least three estimates from various reputable and licensed contractors.Each estimate should include the project details, permit costs, insurance, general contractor fees, and it should also include a warranty on the work. If the estimate isn’t thorough, it could be that the contractor is merely guessing, or is not qualified to do the job.As a homeowner, create a list of questions for each contractor you meet with. Think of it as an interview. Some important details to as about are if they are licensed, bonded and insured, what their experience is with similar projects to yours, and the number of years they have been in business. It’s also prudent to get references and call them to discuss their experience with the contractor and the result.3. Setting an Unreasonable BudgetHome renovations can be costly – there is no skirting around that truth. Before starting any major home renovation, it is essential to budget appropriately and leave room for error. That way, when unexpected issues and expenses come up (and they inevitably will), you will have funds set aside to cover the costs.