I had my home appraised Feb. '06 and took out a mortgage. (the home was paid for) I now need additional monies and want to get a HELOC (home equity line of credit.) It's been exactly one year since the initial appraisal, do I now need another one? If so, why? And what's the time limit, ie., if I had done this 6 months into the initial mortage would I have needed an additional appraisal?
2007-02-16 06:25:08 · 11 answers · asked by Tracyi B 2 in Business & Finance ➔ Renting & Real Estate
From my knowledge a HELOC does not require an appraisal. They are done for refinancing and purchasing . The banks use automated appraisal software for HELOC. Appraisals are usually good for up to 6 months.
2007-02-16 06:49:13 · answer #1 · answered by tianaramal 4 · 0⤊ 0⤋
In most cases, appraisals are valid for only 120-180 days. Inside of a year, the appraiser can go out, reinspect the property, and recertify the original appraisal.
They need to be limited in time, because values change over time. In some markets, values have dropped 15-30% since last year. The banks need to know that, and so do you, since you really don't want to end up financing more than your home is worth.
A word of caution. Many lenders doing HELOC's will only use an AVM, automated valuation modules. Computerized appraisal. It's nice, because they're super-cheap, and the bank will likely not even charge you for it. But, they aren't always terribly accurate, and you could end up upside down. That happened to someone on this forum recently, upside down by about $45 grand. OUCH. Better to pay $350 and ensure you're dealing with accurate numbers.
2007-02-16 17:13:34 · answer #2 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
yes --property values can change in any area. Most appraisal are good only for 6 months and after 3 months must be re-certified by the appraiser.
I am a mortgage banker.
By the way get a closed end fixed rated second deed of trust as HELOC's can go in some states up to 24% on the unpaid balance and most are based on prime
2007-02-16 14:32:08 · answer #3 · answered by golferwhoworks 7 · 1⤊ 0⤋
The mortgage company or bank or credit union as a matter of policy will probably want an appraisal, but if I remember correctly, it is at their expense, not yours. You might want to offer the appraisal you had done, but it will be their choice as to whether or not they accept it. A lot can happen to a house in year which would affect its value.
2007-02-16 14:40:22 · answer #4 · answered by guyotgirl 3 · 0⤊ 0⤋
It all depends on the lender. Some will absolutely require one and others may be OK with the previous year's appraisal. It also depends on the real estate market in your area. If home prices have been fluctuating up or down, they will likely want a new one.
2007-02-16 14:31:12 · answer #5 · answered by C Anemone 5 · 1⤊ 0⤋
The lender for your HELOC will absolutely have an appraisal done. That will determine how much equity you have in your home and how much you can borrow against that equity.
2007-02-16 14:28:12 · answer #6 · answered by Paul V 6 · 1⤊ 0⤋
See if the lender will take a revised Appraisal form the some company ? It may save you a few bucks?
2007-02-16 14:45:16 · answer #7 · answered by L 2 · 0⤊ 0⤋
Mortgage companies & banks usually require an appraisal as part of their process. A new loan requires a new appraisal. Can't fight it.
2007-02-16 14:30:05 · answer #8 · answered by Tim P 2 · 1⤊ 0⤋
Your home was paid off, and now your mortgaging, and going for a heloc? You should of sold the home and bought something less expensive. I see a foreclosure coming up.
Anyway, you need another appraisal.
Good luck
2007-02-16 18:57:10 · answer #9 · answered by frankie b 5 · 0⤊ 0⤋
you will need an additional appraisal.
you may not have need an additional appraisal within 6 months, but you may have had to get one to make your new lender happy.
2007-02-16 14:29:15 · answer #10 · answered by Amish Rebel 4 · 0⤊ 0⤋