What Do Appraisers Look For In A Refinance

This market value is important for a bank to know before it will loan money on the property.

An appraiser takes several factors into consideration when determining a property s worth such as square footage the number of bedrooms and the current condition of the house. When it comes to refinancing they ll take a look at recent sales near your current home to help them gauge this value. After the appraisal is complete the mortgage lender will determine how much they will lend for the property. The presence of excessive moss on the roof rotten rafter tails cracked and peeling paint over the doors and unpainted exterior surfaces are just some of the external areas that would have a negative impact while refinancing appraisal your home.

Appraisers completing an inventory for loan refinancing look at tax records to discover any new building additions permitted by the city or county since the original loan. What do appraisers look for in a refinance. The valuation also influences how much the loan amount will be. An appraiser is a certified independent professional and is able to provide an accurate unbiased valuation.

When a home is changing owners the purchase agreement sale contract is part of the appraiser s scope of data and is considered a powerful indicator of value. The appraiser then looks to ensure that any remodeling included proper permits and that inspections met local building codes. A lender will typically request an appraisal to ensure they aren t lending more money than the home is really worth. The number of bedrooms total number of rooms number of bathrooms square footage of the home and even floor plans will all be considered.

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Keep in mind that there is a big distinction between appraisals use in home sales and those used to refinance a property. The recent home sales are also known as comparables or comps. Rather an appraiser will check the general condition of your home to determine its market value. Below are some other factors that your appraiser will consider.

Homeowners may also request an appraisal when refinancing their mortgage. Although you can t increase the square footage or the number of rooms in your house on short notice you can make simple improvements to help your home appraise higher. The appraiser will look inside and outside. They will report this valuation to the lender.

The appraiser gets paid for providing the service of valuing your home but has no skin in the game when it comes to whether you re able to refinance as a result of the value they arrive at.