Overview
When refinancing, the appraisal becomes one of the most important parts of the entire approval process. Lenders rely on the appraised value to determine how much equity you have, how much you can borrow and whether the mortgage meets their risk guidelines.
This guide explains how refinancing appraisals work, how lenders interpret them and what you can do to prepare for a smooth, stress free experience.
Refinancing decisions are based on the relationship between your home’s value and the amount you want to borrow. A lower than expected value can: • Reduce how much equity you can access • Change your loan to value ratio • Trigger stricter lending conditions • Delay or jeopardize the approval
Understanding the refinancing appraisal process helps you prepare properly, avoid surprises and present your home in a way that reflects its true market value.
How Refinancing Appraisals Work
The process is simple but highly structured.
Refinancing appraisals are reviewed with even more caution than purchase appraisals.
Lenders look for:
- Clear, strong comparables
They must be recent, local and similar to your property.
- Logical adjustments
Differences in size, condition and upgrades must be supported by market evidence.
- Accurate property characteristics
Underwriters verify all details, including:
• Living area
• Basement finish
• Garage type
• Lot size
• Condo fees
- Legal use and zoning
Illegal suites, unpermitted additions or zoning conflicts can slow or stop the approval.
- Condition that matches the photos
The report must accurately represent the property.
- Market commentary
Lenders need to see how the appraiser interpreted current market conditions.
How To Prepare For A Refinancing Appraisal
You cannot influence the value, but you can ensure the home is presented clearly and professionally so the appraiser can do their job efficiently.
- Ensure accessibility
Make all areas accessible including:
• Utility rooms
• Electrical panels
• Garage
• Furnace room
• Mechanical areas
- Remove obstacles
Clutter does not lower value, but it can limit visibility and slow the inspection.
- Prepare upgrade documentation
If you renovated, gather:
• Invoices
• Permits
• Completion dates
Clear documentation helps the appraiser verify improvements.
- Provide rental information if applicable
If the property generates income, prepare:
• Rental contracts
• Market rent data
• Expense details
Lenders need this information to evaluate risk.
- Address small maintenance issues
Minor issues do not make or break a value but unresolved items can create unnecessary questions.
Avoid these to keep the process moving smoothly.
• Missing access to parts of the home
• Incomplete or unverified upgrades
• Illegal basement apartments
• Poor or unclear property condition
• Tenants restricting access
• Outdated homeowner provided measurements
• Conflicting listing history
Clear communication and preparation prevent most delays.
Will cleaning increase the value?
No, but it improves visibility and reduces the chance of overlooked features.
Can I share comparables with the appraiser?
You can share information, but the appraiser must independently verify and determine relevance.
What if the value comes in lower than expected?
You can request clarification or additional information. Lenders may allow a reconsideration if new evidence exists.
Do lenders require certain types of appraisals for refinancing?
Yes, most require full inspections and strict guidelines for comparables and adjustments.
If you are preparing for a refinance and want to understand how your home’s value will be assessed, our team can guide you through the process and help you get ready.
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