How to Prepare for an Appraisal for Refinance
Refinancing your home loan and getting a better rate and terms can help save your home. Homeowners often receive a lower interest rate on refinances, which reduces the monthly payment. However, to qualify for a refinance, mortgage lenders conduct a home appraisal to determine your home's worth, and some lenders will not refinance if you owe more than the home's value. By preparing for a refinance, you can take steps to increase the value of your home.
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Instructions
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Clean up the front and back yard. The exterior of your home and the curb appeal impacts the appraised value of your home. Increase your value by adding new shrubs, plants, re-seeding lawns, removing clutter and repairing/replacing fences or sheds.
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Redecorate the home. Add wall color and accessories to the home to help improve the value. Include minor fixes such as replacing lights and bathroom fixtures to give you a space a new look.
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Add new windows and doors. Remove old or worn doors and windows and replace with an energy efficient, newer style.
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Put in new floors. Replacing the flooring in your home can give the property a fresh look and increase the property's value. Consider removing carpet or linoleum floors and installing tile or hardwood floors.
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Do a complete renovation, if affordable. Completely gutting your old kitchen and bathroom and installing new counters, cabinets and appliances can significantly increase your home's value and result in a higher appraisal.
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Tips & Warnings
Only remodel or renovate your home if you have cash to complete the project. Financing or using a credit card for home improvements can increase your debt ratio, and high debts make it harder to refinance.
