Whether you are purchasing a home or looking to refinance, determining the property’s value is an important step in the mortgage application process. This amount will determine the amount of mortgage you’ll be offered.
How home value is measured?
A home’s value is based on its features. These include square footage, location, age, quality and number of bedrooms and bathrooms.
A property’s value isn’t fixed. It’s a snapshot of what it’s worth in the current market in relation to what similar properties are selling for. Renovations will affect a home’s value, as well as the neighbourhood and the current real estate market.
What you need to do…
When you apply for a mortgage, your lender will ask you questions about the property. You’ll also need to give details about any renovation costs you plan to add to your mortgage. We may ask for the home’s appraisal. This is something I’ll work through with you to ensure we understand the true value of your property.
Get the amount you need
If your home appraisal doesn’t support the mortgage amount you want, talk to myself or your realtor. Together, we’ll explore your options.