Sometimes people overlook just how useful a home appraisal for refinance can be. In fact, a home appraisal for refinance is actually common to be dependent on the results of the appraisal. An appraisal is not a process that is to be overlooked or taken lightly.
A home with an overall value that is too depreciated can prevent you from acquiring the refinance you need. Anyone who’s either in the middle of a home refinance or is about to embark on one should definitely look just how vital a home appraisal is to the process.
How Home Appraisals Impact a Refinance
A home appraisal is essentially when an appraiser comes in to determine the price of your home in comparison to other properties. Knowing this value is very important in order to get an accurate refinance.
Market prices change rapidly and sometimes unpredictably. Even if you got a home appraisal a year ago, a lot can change and property values may not be what you expect.
As a result, your home’s value may be quite a bit higher, or quite a bit lower, than what you believed it to be. Receiving a home appraisal for refinance is a perfect way to determine just where your property stands in the marketplace.
Advantages of a Home Appraisal for Refinance
Home appraisals for a refinance are very useful because they can help you avoid paying your private mortgage insurance (PMI). This can be avoided if your home appraisal determines you have 20 percent equity of your home.
Better Interest Rates
You can also end up acquiring a better interest rate if your home appraisal determines that the property value has increased.
How to Prepare for a Home Appraisal for Refinancing
Preparing for a home appraisal for refinance is fortunately pretty straightforward. Simply keep your home in good condition and consider updating or renovating it as you would while putting it on the market.
This includes applying fresh paint, cleaning and organizing your home both inside and out, and replacing any old carpeting or flooring.
If you want to go further you can also update bedrooms, kitchens and bathrooms with new fixtures, cabinets, lighting, wallpaper or anything that gives it a quick but new look. The same is true for curb appeal. A beautiful garden that’s easy on the eyes can make a solid first impression.
Now that you have the necessary knowledge about refinancing home appraisals get yours scheduled! We are accepting home appraisals throughout Maryland and West Virginia. Give us a call or contact us to get started.