Loan officer shares industry tips to help you get the best
appraisal--which helps you get the best mortgage term and options when
you refinance your home
COLUMBUS, Ohio -- Mortgage rates are at near-historic lows, but sinking home values are often lowering appraisals as well. If you are considering refinancing your home, what do you need to know about the appraisal process to help ensure that you get the best possible appraisal on your home? Seasoned loan officer and mortgage industry insider Len Finelli shares his ten important tips on understanding the appraisal process. If you are a homeowner seeking to refinance, heeding these important tips on appraisals before proceeding can improve your refinancing options and save you time and money.
Len Finelli is a senior loan officer with Residential Finance (http://www.residentialfinance.com), a nationwide mortgage lender specializing in FHA mortgage refinance. He explains, "Because your appraisal is used to evaluate how much your home is worth, and sets the maximum amount you're allowed to borrow against your home, your appraisal is the first--but one of the very most important steps in refinancing.
"But be careful about getting a home appraisal completed before your lender has reviewed and approved your income and credit," cautions Len. "Since your appraisal is always the unknown factor in the refinance equation, you should research the value of your home as the first--and most important step in preparing to shop for a home loan. In today's market most people don't realize how the value of their homes may have changed over the past 6-12 months. Having a realistic sense of your home's current market value can help you shop and compare mortgage refinance options and save you time, money and aggravation in refinancing your home."
Top 10 Appraisal Tips to Help You Save Time and Money
"Loan officers have many tools at their disposal to help you
through the appraisal process, and a great loan officer will leverage
their knowledge to guide you," says Len, who shares these 10 top
appraisal tips to help you get the best possible appraisal on your home:
1. Continuously research the value of your home and homes in your neighborhood; pay attention to foreclosures in your area; they will drive down the value of your home.
2. Since appraisers use "comps" (comparable market sales) of local properties sold within the last six months to value your home, make sure to work with a great loan officer who will leverage their knowledge to research comps in your area, before ordering the appraisal.
3. If you use your own appraiser, research them first and ask your lender to cross check them for any potential issues that may delay the process. Great loan officers will always confirm your appraiser's credentials.
4. Direct your loan officer to work with local, experienced appraisal companies. Local appraisers have a deeper knowledge of the surrounding neighborhood and will likely be more readily available for the home inspection, to speed your appraisal process.
5. The appraisal report is yours to keep. Find out in advance who pays for the appraisal--many times appraisal fees are the homeowner's responsibility and have to be paid up front.
6. New lending regulations require two appraisals in some situations--ask at the beginning whether you'll need one or two.
7. Commit to your lender before committing to an appraisal. Being comfortable working with your loan officer is imperative. They often will be the liaison between you and the appraisal company.
8. Make sure any major repairs are completed before moving forward with your refinance. Structural damages drive your home value down and jeopardize the approval process for today's popular government-backed FHA loans.
9. Don't overestimate the value of making cosmetic home improvements. The expense is rarely justified because in the appraisal world, only improvements that add square footage will significantly increase home value.
10. Rely on market value rather than tax assessments for a realistic appraisal value--in today's market, tax value and current market value may differ widely, but your lender can only go by appraisal value.
Finally, homeowners should expect their lender to explain the appraisal process and all of the steps for refinancing clearly and up front. "Homeowners have a right to understand the process fully before going forward with their appraisal and refinance," Len says. "Ask questions, and if they aren't answered to your satisfaction, find another lender that has the answers. Today's market offers many opportunities for homeowners to refinance, and a reputable lender can help homeowners find great options to consolidate debt, shorten terms and lower payments. And it all starts with an appraisal."
Residential Finance Corporation (RFC) is the nation's premier home mortgage company specializing in refinance. Founded in 1997 and now serving 26 states, "Full Eagle" certified by the U.S. Department of Housing and Urban Development (HUD), offering refinancing borrowers the security and great rates of government-insured home mortgage loans. RFC's investor relationships include some of the nation's largest and most diverse investment banks. From headquarters in Columbus, OH and numerous regional offices, RFC employs hundreds of knowledgeable Home Loan Consultants dedicated to helping consumers find the right home mortgage loan--with the best mortgage rates, terms and costs--to meet each homeowner's unique needs, including individuals with less-than-perfect credit, and those who may have been turned down by other lenders. For more information, contact Jessica Manna, CMO, at 614-255-4317.
COLUMBUS, Ohio -- Mortgage rates are at near-historic lows, but sinking home values are often lowering appraisals as well. If you are considering refinancing your home, what do you need to know about the appraisal process to help ensure that you get the best possible appraisal on your home? Seasoned loan officer and mortgage industry insider Len Finelli shares his ten important tips on understanding the appraisal process. If you are a homeowner seeking to refinance, heeding these important tips on appraisals before proceeding can improve your refinancing options and save you time and money.
Len Finelli is a senior loan officer with Residential Finance (http://www.residentialfinance.com), a nationwide mortgage lender specializing in FHA mortgage refinance. He explains, "Because your appraisal is used to evaluate how much your home is worth, and sets the maximum amount you're allowed to borrow against your home, your appraisal is the first--but one of the very most important steps in refinancing.
"But be careful about getting a home appraisal completed before your lender has reviewed and approved your income and credit," cautions Len. "Since your appraisal is always the unknown factor in the refinance equation, you should research the value of your home as the first--and most important step in preparing to shop for a home loan. In today's market most people don't realize how the value of their homes may have changed over the past 6-12 months. Having a realistic sense of your home's current market value can help you shop and compare mortgage refinance options and save you time, money and aggravation in refinancing your home."
Top 10 Appraisal Tips to Help You Save Time and Money
1. Continuously research the value of your home and homes in your neighborhood; pay attention to foreclosures in your area; they will drive down the value of your home.
2. Since appraisers use "comps" (comparable market sales) of local properties sold within the last six months to value your home, make sure to work with a great loan officer who will leverage their knowledge to research comps in your area, before ordering the appraisal.
3. If you use your own appraiser, research them first and ask your lender to cross check them for any potential issues that may delay the process. Great loan officers will always confirm your appraiser's credentials.
4. Direct your loan officer to work with local, experienced appraisal companies. Local appraisers have a deeper knowledge of the surrounding neighborhood and will likely be more readily available for the home inspection, to speed your appraisal process.
5. The appraisal report is yours to keep. Find out in advance who pays for the appraisal--many times appraisal fees are the homeowner's responsibility and have to be paid up front.
6. New lending regulations require two appraisals in some situations--ask at the beginning whether you'll need one or two.
7. Commit to your lender before committing to an appraisal. Being comfortable working with your loan officer is imperative. They often will be the liaison between you and the appraisal company.
8. Make sure any major repairs are completed before moving forward with your refinance. Structural damages drive your home value down and jeopardize the approval process for today's popular government-backed FHA loans.
9. Don't overestimate the value of making cosmetic home improvements. The expense is rarely justified because in the appraisal world, only improvements that add square footage will significantly increase home value.
10. Rely on market value rather than tax assessments for a realistic appraisal value--in today's market, tax value and current market value may differ widely, but your lender can only go by appraisal value.
Finally, homeowners should expect their lender to explain the appraisal process and all of the steps for refinancing clearly and up front. "Homeowners have a right to understand the process fully before going forward with their appraisal and refinance," Len says. "Ask questions, and if they aren't answered to your satisfaction, find another lender that has the answers. Today's market offers many opportunities for homeowners to refinance, and a reputable lender can help homeowners find great options to consolidate debt, shorten terms and lower payments. And it all starts with an appraisal."
Residential Finance Corporation (RFC) is the nation's premier home mortgage company specializing in refinance. Founded in 1997 and now serving 26 states, "Full Eagle" certified by the U.S. Department of Housing and Urban Development (HUD), offering refinancing borrowers the security and great rates of government-insured home mortgage loans. RFC's investor relationships include some of the nation's largest and most diverse investment banks. From headquarters in Columbus, OH and numerous regional offices, RFC employs hundreds of knowledgeable Home Loan Consultants dedicated to helping consumers find the right home mortgage loan--with the best mortgage rates, terms and costs--to meet each homeowner's unique needs, including individuals with less-than-perfect credit, and those who may have been turned down by other lenders. For more information, contact Jessica Manna, CMO, at 614-255-4317.
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