Home Appraisal For Refinance Vs. Purchase: FAQs
Let’s take a look at some frequently asked questions about refinance and purchase appraisals.
What do home appraisers look for in my refinance appraisal?
Similar to a purchase appraisal, the appraiser will inspect the interior and exterior of the house to determine its size, square footage, number of bedrooms, features and overall condition. They’ll also look for any permanent improvements you’ve made to your property.
Finally, the appraiser will analyze the fair market value of your home against other comparable homes, called real estate comps, that have recently sold in your area.
How do purchase and refinance appraisals differ?
With a purchase appraisal, you normally don’t attend the appraisal since you haven’t purchased the home yet. When a refinance appraisal is conducted, you’re able to be in attendance because you own the home that’s being appraised.
Is an appraisal always required for a refinance?
Home appraisals are often a refinance requirement, but not always. Your lender will typically require a new home appraisal if you want to change your loan type or take a cash-out refinance. However, if you’re only changing your loan’s term, interest rate, monthly payment amount or payment structure, you can often do so without getting a new appraisal.
Do appraisers always come inside for a refinance appraisal?
Your mortgage lender will determine the need for a full – or in-person – appraisal based on your reasons for refinancing and how much equity you’ve built in your home. If you aren’t refinancing to change your loan type, or if you haven’t built much equity in your home, your lender may decide that an alternative appraisal (like a hybrid appraisal) or even no appraisal is needed.
What is the easiest refinancing option?
A USDA Streamline Assist Refinance is often considered the easiest refinancing option, as it allows you to skip the appraisal and debt-to-income ratio (DTI) assessment. However, USDA Streamline Assists also come with strict qualification criteria, so be sure to do your research.
Keep in mind that Rocket Mortgage currently does not offer USDA Streamlines.
