Home Appraisal for Refinancing
What is home appraisal for refinancing? A home appraisal for refinancing is a survey of a home by an appraiser or professional for their view of the property market value and that value would be used for refinancing another loan or mortgage. An appraisal is usually needed for a bank 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 are looking for a home appraisal for refinancing, here are some tips that will save you time and money on your mortgage refinance. Remember, according to seasoned lenders, an appraisal is used to evaluate how much your home is worth, and this sets the maximum amount you can borrow, this is the first and most important steps in refinancing.
For home appraisal for refinancing, borrowers should always continuously research the value of their homes and others in the neighborhood. If there are foreclosures in the area, it also brings down the value of your own home.
Make sure that the loan officer who has knowledge of research comparable market sales in your area before ordering the appraisal. This way, appraisals can be leveraged into making 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, direct the loan officer to work with local or experience appraisal companies, they are familiar with the surrounding neighborhood and will always be available for home inspection.
Ask who would pay for the appraisal report, because the usual way is it’s the homeowner’s responsibility, and ask how many appraisals are needed. Make sure any major repairs are completed 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.
Today’s market offers a lot of opportunities for homeowners to refinance and lower short-term debt. This all starts with an excellent home appraisal for refinancing.