FAQs About Refinance Appraisals
Find answers to the most frequently asked questions about refinance appraisals.
How long does underwriting take after a refinance appraisal?
Once the appraisal is complete, finalizing the refinance generally takes 1 – 2 weeks.
Can a refinance be denied after the appraisal?
Yes, a lender may deny a refinance if the appraisal is lower than the amount you owe on the mortgage. An appraisal establishes a home’s fair market value. If the home’s fair market value is lower than your requested loan amount, you may not qualify for the entire amount. The lender can’t offer as much for the loan if the appraisal comes in lower than expected.
How clean does my house need to be for a refinance appraisal?
A spotless home isn’t required. What’s critical is ensuring your home appears well taken care of. To make sure the appraiser can easily see your home is in good condition and well maintained, clear away any messes, mow your lawn and maybe empty the sink before the appraiser knocks on your door.
What should I do to prepare for a mortgage refinance appraisal?
Once your lender tells you which type of appraisal they plan to order, you’ll have a better grasp on how to prepare. The primary way to prepare for a refinance appraisal is to tidy up the interior and exterior of your home. Check out our refinance appraisal checklist for a complete list of steps to help you get ready.
How much does a refinance appraisal cost?
The price of an appraisal will depend on several factors. First, you’ll need to know what type of appraisal your lender requires. Second, it’ll depend on where you live. For example, appraisers may find it harder to assess fair market value in rural areas. It’s challenging to make direct comparisons because there are fewer comparable sales. If your property is unique, it can also be difficult to assess its value because the more one-of-a-kind your home is, the harder it is to determine its fair market value.
Your lender will estimate closing costs after you’re preapproved and include them in the loan agreement. Three business days before closing, your lender will send you a Closing Disclosure that details the final closing costs. A home appraisal can cost between $600 – $2,000. A single-family home appraisal will typically be on the lower end of the cost spectrum, and a multifamily property will usually be on the higher end.
Who pays for a refinance appraisal?
The borrower pays all costs associated with the origination of the new home loan at closing or rolls the costs into the loan. When you fold your costs into your loan, you won’t have to worry about having the cash to cover the cost of your appraisal at closing.
