Appraisal Shock during a Refinance

Appraisal shock

The ultimate determination of whether you’ll qualify for a mortgage refinance or not will depend partly on your appraisal, especially if you’re in an area where real estate values have dropped. Prepare yourself by checking with a local realtor, and asking for a list of recent properties that have sold that are comparable to yours. This will give you some idea of how much your home is currently worth. Before the appraiser comes, fix any obvious problems that may be an eyesore, like broken windows or messy landscaping. Also, don’t use the “assessed value” to guess where your appraisal may come in. That number is determined by the county tax assessor and could be lower or higher than the current market price of your property.