A Look At Home Appraisal For Refinancing

by David Jenyns on May 23, 2011

Many people want to learn about home appraisal for refinancing. A home appraisal for refinancing is a survey of a home by an appraiser or professional for their idea of the property market value and that value is useful for refinancing another loan or mortgage. An appraisal is a bank requirement to a homebuyer when that person needs to secure a loan.A mortgage broker who helped the first home buyers with home refinancing with the help from IT support provided the useful info.

A home appraisal for refinancing is usually a substantial report that considers 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. The evaluation could be based on 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. Unlike cost/replacement, appraisers mainly compute for the 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. 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, 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. If this happens, appraisals can be leveraged resulting to a good appraisal. If you have your own appraiser, it is important to know them well through your lender so things can speed up a bit. 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.
Usually, it’s the homeowner who pays for the appraisal report so make sure to 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.
In the present market, there are many opprtunities for homeowners to refinance and lower short-term debt. This all begins with the right move that includes an excellent home appraisal for refinancing.


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