Most people know that they will need residential appraisals when they sell their homes, but did you know that you might need them for other reasons? Getting a home appraisal is something you might need for several reasons, and here are three situations when you might need one.
1. When You Decide to List Your Home for Sale
Did you know that many homeowners hire appraisers before they list their homes? The primary purpose of this is to find out from a professional how much their homes are worth. For this reason, when you hire an appraiser, you will feel more confident when selecting your asking price for the house. You will have a report from the appraiser that certifies your home's value, and you can use this report to determine your asking price. While the homebuyer will not be able to use this appraiser when buying your house, they might appreciate seeing the appraisal before making an offer to buy your house.
2. When Refinancing
If you want to reduce your home loan payments or acquire a lower interest rate, you might decide to refinance your home loan. Refinancing is the process of getting a brand-new loan to replace your current one. Lenders have many requirements when they offer refinancing loans, and one of these is an appraisal. Your new lender will need to verify your home's value, and they will do this through the appraisal.
3. When Getting a Home Equity Loan
The third situation when you will need an appraisal is when you decide to get a home equity loan. A home equity loan is a second mortgage on a house, and it is not the same as a refinance loan. Instead, a home equity loan provides you with cash from your home's equity that you can use for various things. To qualify for one, your lender will require an appraisal. They will base the loan amount on your home's value and the current balance of your existing first mortgage.
If you encounter these situations in your life, you might need an appraisal. You will also need one if you find a buyer for your house, as they will not be able to purchase your home without one. If you currently need a residential appraisal, contact a company in your area that offers them. They will come to your home to complete the appraisal process for you.