With Fixed Rates transgressing record territory, many existing Mortgage holders are wondering if they can benefit from the current low interest environment. Mortgage restructuring can be an effective financial strategy for reducing interest costs on outside debts, leveraging equity for investment purposes, injecting your small business with capital or funding your dream home improvements. In order to refinance your Mortgage, lenders will request an Appraisal of your home to determine the market valuation of the property and thereby, the dollar value of your accessible equity. Income, net worth and credit history will also contribute to your allowable refinance amount.
Items denoted in the Appraisal, such as the property’s structural condition, external neighborhood elements and internal aesthetic factors, can influence the Appraisers final valuation. As numerous factors influence this figure, keep in mind the following when an Appraisal is being conducted to ensure your home aligns on the high end of its potential.
- Exterior/Interior Conditions – It may be a good idea to apply a fresh coat of pain or spruce up garden beds for a lasting first impression.
- Functionality – For the purpose of an Appraisal it is a good idea to rearrange furniture or items that are not functional for most families. Think of this as staging your home for a potential buyer.
- Exterior Amenities (Garages, Decks, Porches) – Make sure that the garage is organized and the deck or porch is cleared off and inviting.
- Unappealing Features – Overbearing aesthetic may contrast with the neighbourhood can be considered unappealing. You want to ensure that your home is appealing and comparable to other similarly designed properties.
With these considerations in mind, preparing adequately for an Appraisal can go a long way in your successful future refinance.