What is a refinance appraisal?

When looking to refinance your home mortgage, your lender may request an appraisal.

Lenders ask for a refinance appraisal when borrowers are looking to exchange their current mortgage for a new one. The appraisal will tell lenders how much your home is currently worth and whether your new home value is enough to secure an updated loan.

Though not all loan refinances will require an appraisal, for those that do need one, there are a few things you can do to help with your appraisal.

To see if you will need an appraisal for your refinance, you can start by applying for your refinance and talking with a loan officer today.

Not all mortgage refinances require a home appraisal. A refinance appraisal will be determined by the loan type you get and when you last got an appraisal.

While most types of loans will require a refinance appraisal, loans that do not access your home’s equity or use your home as collateral don’t require an appraisal. If you are just hoping to change your loan rate or length, you generally don’t have to worry about getting an appraisal.

Some lenders will let you skip a refinance appraisal if you have gotten a home appraisal in the past year. Of course, every lender is different. Some may require your home to be appraised even if you have had one in the past year or are just looking to change some terms of your current loan.

During a refinance appraisal, your appraiser will check your home condition, location, any renovations and similar sales in the area.

An appraiser will look at your home’s foundation, walls, roofing and fixtures to determine your home’s condition. But your home condition is not just interior; the exterior and curb appeal of your home will matter as well.

Your home’s location in relation to amenities, attractions and a booming job market could improve your home’s appraisal as well. On the other hand, if your home is near an area with high crime, your appraisal might come back lower than you had hoped.

Improvements and renovations you make to your home could help boost your home appraisal. Some updates you make will have a better return on investment (ROI) than others.

One of the last aspects your appraiser will look at is the sale of similar homes in the area. Recent sales of similar homes in your area can let an appraiser know what your home could be worth and what buyers are willing to pay for comparable homes.

If you are looking to get the best possible refinance appraisal, here are a few points you can consider to boost your appraisal.

• Increase curb appeal: Your curb appeal is how your home looks from the street, and it’s the first thing people see when approaching your home. Because it informs first thoughts on your home, curb appeal can play a big factor in your home appraisal. Small decorations and proper lawn care can increase your home’s curb appeal.

• Check all appliances: Appraisers will want to see that all your home appliances, from dishwashers to laundry machines and HVAC systems, are in proper working condition. Test all your appliances and make sure they are running without any trouble before your appraisal. This can be especially important in older homes.

• Consider day projects/small upgrades: There are small upgrades that normally take an afternoon to complete but can elevate your rooms before an appraisal. Some of these projects that won’t break your bank are replacing hardware, adding a backsplash and painting a room or trim.

• Clean important spaces: Not only will cleaning or decluttering make your home look nicer for the appraiser but can help your space feel bigger and show off any upgrades or renovations you have made. While a clean home won’t necessarily boost your appraisal, it can help give the appraiser more access to your home.

If your home appraisal is lower than expected, you can either appeal the appraisal or prepare your home for future appraisals.

The first thing you will want to do if your appraisal is low is to review your appraisal. This way you can understand the appraisal you got and places that might have negatively affected it. After reviewing your appraisal, you can decide if you want to appeal the appraisal or update your home and prepare for a new appraisal.

For an appeal, you will need to research the market of comparable homes and talk to a real estate agent or loan officer to help you go through and submit everything. If you decide to get a new appraisal, you can go through your previous appraisal and make any updates that could increase your value.

Begin your refinance application before getting an appraisal and taking advantage of your home’s current value.

_{Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.}

_{Information provided is for educational purposes only. It should not be construed as financial or legal advice or instruction. Rate does not guarantee or assume liability for the accuracy, completeness or timelines of the information. You should conduct additional research before making any mortgage related dec}isions.