Refinancing is an option that homeowners can take should they wish to restructure their mortgage payment. Refinancing is a smart idea if you believe that you are on the brink of defaulting due to some uncontrollable circumstances. While this might cost you a bit more if you think about it, it’s better to pay a bit more than destroying your credit.
Refinancing is also good if you are expecting some other needs that need your financial attention.
A low home-appraisal may hinder a refinancing grant. If you really are looking into undertaking refinancing, you would need to increase your home’s appraisal value. If you’re really interested in having your home mortgage refinanced, we are ready to provide you with expert tips that might just be able to help you out.
How to Increase your property’s value:
To help increase your home’s appraisal so that you can win a refinancing application, here are some ways on how you can do so:
Spruce it up.
When the appraiser arrives to assess the value that your home carries, make sure that you make it look like it’s in tip-top shape. The best example that you can take after is how houses for sale are presented to prospected buyers.
Some of the things you need to do are tidying up, and fixing minor damages, and covering up bigger ones.
Have a mindset that you are trying to sell your home and you need it to be presentable as possible.
Don’t neglect the outside
When you prepare your home for appraisers, don’t forget about the outside of your home. Your home’s exterior is as important as the outside. It won’t work if only the inside of your home is appealing.
The appraiser would be evaluating your home even before you let him or her inside. You wouldn’t want to fail even before the appraiser gets inside, right? So ready the outside too.
Ensure that the paint is still in good condition, that the greens are fresh and trimmed, and the driveway is decent. The little things, like having your house number on the mailbox also count.
Provide your own comps.
There are some appraisers that are not particular to some neighborhoods and yours might be one of them. If there’s a recent sale in your community, try getting info on how much the transaction was closed so that you would have a rough idea of how much your own house’s value is. This will also let you have a price in mind.
Point out any major improvement
Improvements, especially the major ones, would add value to your home. So if you have made any, don’t forget to mention it because it will help. However, don’t go spending on an improvement purely in anticipation of a refinancing because the cost of your improvement might not be considered in full. It’s worth to note that changing your door to a steel one is one of the most successful improvements that helped increase the value of a home.
Be available to answer questions.
Not all of us are gifted with the confidence to converse. Appraisers, for one, can be very intimidating, and you would hope for the best not to mess up. However, you should be taken in all courage you have and compose yourself because the appraiser would appreciate it if you would answer questions that he or she might have about your house, especially that he or she has not much knowledge about your house.
Appraise the appraiser
It would be great to know the appraiser before he or she goes to your home. You should find credentials like having MAI or SRA because these will determine the level of expertise your appraiser has. If you got a low appraisal, you can question the ability of the appraiser should he or she not have any proof of his or her capability.
Know your rights
When you commission an appraisal, please understand that you have certain rights, one of which is that the appraisal belongs to you. If the refinancing institution commissioned the appraisal, you should be given a copy. This will give you a chance to check for any error, and to justify such, especially if you got a low appraisal.
THE BOTTOM LINE:
These are some of the ways on how you can increase the value of your home should the need for appraisal for refinancing comes. If you’re planning to rent your home in the near future for extra income consider getting a rent appraisal first from experienced property manager providers so you can get the most out of your investment property by obtaining no obligation.
Make sure that you do as much of the tips we have provided to ensure that you get a good appraisal.