Refinancing is a great way for many homeowners to reduce their current interest rate and monthly payment, as well as utilize equity for home renovation projects, debt consolidation, or any other purpose.
Homeowners interested in refinancing must be approved by a lender, and the first step involves a home appraisal. A mortgage company will not lend more than a home is worth, which is why it’s customary to have a home appraiser assess the value of a property.
Several factors are taken into consideration when determining the worth of property including square footage, the number of bedrooms and bathrooms, and the current condition of the home. Though some factors cannot be changed, such as the square footage, it is possible to make your home appraise for a higher value through home improvements.
Here are four ways to ace your home appraisal:
Curb Appeal
As you know, first impressions are key, especially for home appraisers. As a homeowner, it’s important to make sure the curb appeal of your home is in top-notch shape. Consider cleaning up the landscaping, planting fresh flowers, mulching, and painting any exterior portions of your home that need attention. For a final touch, add a new wreath or doormat to spice up your entryway.
Add Value Through Home Improvement Projects
Not all home improvement projects will increase the value of your home; therefore, it’s important to invest your dollars wisely into projects that will positively impact your investment such as updating the kitchen and bathrooms. Renovating the kitchen and bathrooms of your property can add thousands of dollars in value, which is great whether you choose to refinance or sell your home.
While you may not have the time or financial resources for a major renovation, there are still plenty of upgrades that are worth considering: replace old sinks, update light fixtures and cabinet hardware, add a fresh coat of neutral paint to the walls, etc. If you have a little more time, replace old appliances with newer models, install hardwood flooring, and replace outdated countertops with new ones.
Clean and Declutter Your Home
A cluttered home isn’t just an eyesore- it can also negatively impact the value of your home. Prior to your home appraisal, make sure to clean out the garage, closets, and don’t forget the basement! Consider donating unused items to charity or put them in storage. Furthermore, remove any large pieces of oversized furniture. Doing so will make your home appear as though it has more square footage.
Ensure Everything in Your Home is in Working Order
An appraiser will check everything from appliances to light switches, outlets, fans, vents, and more to make sure each item in your home is in good and working condition. Make sure to hire a licensed electrician to fix any faulty electrical work prior to your home appraisal.
Don’t forget to address any HVAC problems, cracked or damaged drywall, and water leaks. Each of these issues will influence the appraiser as they determine the current value of your property.
When refinancing your mortgage a strong home appraisal is critical. Therefore, it’s important that a homeowner takes every step necessary to present the property in the best condition possible at the time of appraisal.
At GoPrime Mortgage, we’ll help you through every step of the home buying process. From the purchase contract to closing and everything in between, we’ve got your covered! Contact one of our local loan officers in your hometown today.