Homeowners have been encouraged by the record low-interest rates on offer, and many are eager to get their mortgages refinanced. The process can bring a lot of benefits, such as a reduction in monthly mortgage payments. There are also other purposes of refinancing such as cashing out equity for debt consolidation and home improvements.
Refinancing your home consists of various steps. One of the most critical aspects of the process is the home appraisal. Your lender will want to be sure that your home value exceeds the amount of loan you are willing to borrow. If your appraisal results in a higher assessment of your home value, then it is quite likely that you will have more loan options. You don’t need to stress when preparing your home for appraisal. It is always beneficial to be proactive and prepare for it ahead of time. There are several factors, an appraiser considers before determining a property’s value Here are some tips to ensure that you get a high home appraisal for refinancing.
Pay attention to the exterior of your home.
It is essential to pay attention to the exterior of your home because the appraiser not only assesses the interior condition of your house but the outside state as well. Consequently, if you ignore the exterior condition of your home, the chances are that your property will appraise for less.
Pay attention to your yard with fresh eyes. Trim the grass if it needs cutting. Clean the exterior of your windows. Moreover, sweeping or hosing down your sidewalks gives you that clean and fresh look. These little things are particularly important because if your yard is messy and shabby or if the exterior needs significant work, the appraiser might deduct thousands of dollars from your house value.
Make sure everything works.
You can have a big home, with a lot of innovative features, but they won’t fetch you the dollar amount you are looking for if these things don’t function on the day of the appraisal. It is vital to go through your home and check that all your switches, fans, vents, etc. are working correctly. If there are visible problems such as cracks on the ceilings or floors, repair them before the appraiser comes.
Make a list of repairs and upgrades.
It always helps to keep a record of renovations and upgrades you have done to your home. You can indicate them out along with any other notable features of your property to the appraiser. Swimming pools, vintage fireplaces, enclosed garages, and other improvements can add significant value to your appraisal. Furthermore, by pointing out the list of repairs, it makes it easy for the appraiser to see the effort you have put in your property.
Understand the market.
It always helps to understand the home prices in your neighborhood. New schools, restaurants, improved infrastructure, etc., in your area, can increase the value of your home. You can use the resources available online or visit your local realtor to get an idea of local home prices. Appraisers always look at comparable sales within the area to conclude the value of your home. Knowing this information beforehand would help you to point out to the appraiser as to where your home is better than the others in your area.
A low home appraisal for refinancing can be devastating. To avoid getting a shock in the appraisal process, it is imperative to plan and present your home in the best way possible.
If you are interested in refinancing, we at Texas Trust Home Loans can offer you competitive rates. You can check and compare our rates by visiting our website at www.texastrustloans.com. Take control of your finances by filling up a quick loan application. It will take you just 5 minutes and would give you a picture as to how much you can refinance.