When it comes to refinancing your home, most of the pitfalls regarding real estate appraisals can be easily avoided. You just have to be up front with your lender about any possible issues with the house. Here are a few more things that can derail your loan process.
1. If you have a little bit of mold or mildew and think your appraiser won't notice, think again. Water spots on the ceiling or upper walls, or mildew in either place will get your appraiser thinking about your roof and possible leakage. Goodbye loan. Inform your lender. This is not necessarily a deal breaker. If the appraiser sees it first, it will be a deal breaker.
2. I dropped $10k into that new swimming pool/ bedroom/ bathroom so shouldn't that make my house worth $10k more? Depends upon the comps. If you have a 2 bedroom house and 3 bedroom houses sell for only $5k more, then your house will appreciate $5k, even though you put $10k into it. Same goes for a pool, bathroom, etc. The market sets the value, not the cost of the project.
There are two issues there: one can be fixed with a coat of paint and the other, the borrower needs to change his expectations regarding the housing market in his neighborhood. It is important to keep the lines of communication open between you and your lender. If you do, most appraisal issues can be solved and the loan funded.
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment