If you’re planning on obtaining a mortgage at Lake of the Ozarks, or even refinancing an existing one, chances are you’ll be required to obtain an appraisal during the mortgage process. An appraisal provides you and your lender with the market value of the subject property and allows for confident buying and lending of real estate. In this week’s blog, I am going to be discussing the importance of appraisals in the mortgage process and how you can get the most out of yours.
Why are Appraisals Important for Mortgages?
Appraisals have a great deal of impact on acquiring or
refinancing mortgage loans, as the market value of the home will dictate the
amount of financing a borrower can receive. It’s about protecting the
investment of the lender; if the value of the home is lower than the sales
price, and the buyer defaults on the mortgage, the lender will not be able to
sell the property for enough to cover the loan.
Steps you can Take to Get the Most out of Your Home’s Appraisal
Since your appraisal will play such an integral role in your
mortgage process, it’s essential that you do all you can to help bolster the
value that it will bring in. Here are a few tips to help uphold the value of
your home:
Ensure your Appraiser is Local and Knows the Neighborhood
A local appraiser will have a better understanding of the
value of your home because they know the area intimately. This will provide you
with a more accurate representation of the value your home will bring in, as
opposed to someone that isn’t familiar with the neighborhood.
Provide Your Own Comparable Sales Data as Supporting Documentation
Appraisals strongly consider comparable sales in the area
when determining value. So, doing your homework on recent sales in your area of
homes that are similar to yours can be a good way to support the value of your
home.
Understand Which Upgrades Provide the Most Return on Investment
Certain upgrades to your home will provide more “bang for
your buck,” so to speak. If you’re considering some minor renovations before
the appraisal, start with your kitchens and bathrooms as the upgrades are
typically smaller in price and have a greater return of value per dollar. Real
wood floors, quality landscaping, and an enclosed garage can also boost value.
Keep Documentation of Your Upgrades & Additions
When making any renovations or upgrades to your home, always
save your receipts, invoices, etc. This gives you documentation to prove the
actual cost of your upgrades, as well as their timelines. Even for things such
as structural improvements to heating, cooling, and electrical systems can help
support appraisal value.
Ensure Your Home is Clean for the Appraiser
This one is a no brainer, but it’s always best practice to ensure that your home is clean for the appraiser. Clear the clutter, maintenance the landscape, touch of paint, etc. All of these items will help with making the home feel larger and well maintained for your appraiser.
As you can see, an appraisal plays an important part in the
mortgage process. So, when you’re looking to buy a home or refinance your mortgage at Lake of the
Ozarks, you’ll want to do all you can to help support the highest value
possible for your appraisal. As the best
mortgage lender at Lake of the Ozarks, I take great pride in assisting my
clients with their mortgage needs. While giving valuable experience and advice to
help them make the most of their investment. If you’re in need of mortgage
assistance at Lake of the Ozarks, I encourage you to reach out.
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