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Home Appraisal
When you're refinancing, the home appraisal is an important part of the process. It provides an accurate figure for the current market value of your home.
Why an appraisal is important
to you and your lender
Lenders won't normally make refinance loans that exceed a home's appraisal. And it's a good thing they don't. You wouldn't want to be obligated for a loan that exceeded your home's value. If you needed to suddenly sell for some reason, your proceeds could fall short of repaying the loan. And you'd be forced to make up the difference with cash.
Who does the appraisal
Appraisers are qualified by education, training, and experience to estimate the value of real and personal property. They usually charge one fee for a single-family home and slightly higher fees for duplexes and multi-family homes.
Appraisals for government-insured loans, such as a FHA (Federal Housing Administration) loan or a VA (Department of Veterans Affairs) loan, must be done by FHA- or VA-certified appraisers.
What appraisers consider when estimating a home's value
General condition and age of the home
Size of home and property
Location of the home, including views or other remarkable features
Features of the home (3 bedrooms, 2 baths, etc.)
Major structural improvements such as additions and remodeled rooms
Sought-after architectural features such as skylights and fireplaces
Comparable properties in the neighborhood that have sold recently and sales prices (this is usually the most important factor in determining the value of a home)
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Equal Housing Lenders. © 2008 Countrywide Bank, FSB, Countrywide Home Loans Division. Member FDIC. Trade/service marks are the property of Countrywide Financial Corporation, Countrywide Bank, FSB, or their respective affiliates and/or its subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved.