A closer look at home appraisal for refinancing

Many people want to learn about home appraisal for refinancing. A home appraisal for refinancing is a survey of a home or property by an appraiser or ...


Many people want to learn about home appraisal for refinancing. A home appraisal for refinancing is a survey of a home or property by an appraiser or professional for their opion of the property market value and that value is a lot of help when applying for refinancing another loan or mortgage. An appraisal is a bank requirement when a home is being approved for a loan for the homebuyer.

A home appraisal for refinancing is usually a detailed report that looks at the following items: the condition of the home, the neighborhood the home is located, how much and how quick are the similar homes are selling for. This may be a sales comparison or a cost/replacement value. In sales comparison, appraisers will look at the value of other houses in the neighborhood and will compare that value to the property that needs refinancing. With cost/replacement, appraisers look at what would it cost to replace a destroyed home.

Mortgage rates now are at historic lows, but since the home values are also going down at a rapid rate, the result is the lowering of appraisals as well. If you need a good home appraisal for refinancing, here are some helpful tips that will save you time and money on your mortgage refinance. Keep in mind that according to professional lenders, an appraisal is commonly used to evaaluate how much your home is worth, and this sets the limit to the amount you can borrow, this is the first and most essential step in refinancing.

For home appraisal for refinancing, borrowers should diligently research the value of their homes as well as other properties in the neighborhood. If there are foreclosures in the area, this could possibly bring down the value of your own home.

It is crucial that the loan officer has complete knowledge and information of comparable market sales in your area before starting the appraisal. If this happens, appraisals can be leveraged resulting to a good appraisal. If you are using your own appraiser, make a thorough research about them through your lender to speed up the process. Also, suggest to the loan officer to work with local or experience appraisal companies, which are more reliable with the surrounding neighborhood and will always be available for home inspection.

Normally, it’s the homeowner’s responisbility to shoulder the cost of for the appraisal report so make sure to ask how many appraisals are needed. If there are unfinished major repairs, complete them before asking for a home appraisal for refinancing. Structural damages bring down the value of the house and jeopardize the approval process for FHA loans.

Nowadays, the market offers many chances for homeowners to refinance and lower short-term debt. Everything can start with an excellent home appraisal for refinancing.

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