Do you need appraisal for home equity loan?
Also question is, can you get a home equity loan without an appraisal?
While you won't get a home equity loan without some form of valuation, you may not need a new appraisal. If the equity loan is with your existing lender and your initial mortgage is less than six months old, the lender will use the existing appraisal.
Subsequently, question is, who pays for the appraisal on a home equity loan? In most cases, the lender gets the appraisal done and the borrower pays for it at closing. In 2018, the average cost of a home appraisal was $330.
Subsequently, one may also ask, do you have to have an appraisal for a home equity line of credit?
We must determine the value for any property for which a Home Equity Line of Credit (HELOC) is requested. This in turn, allows us to determine the amount that can be borrowed. But with a HELOC, most of the time, a full appraisal is not required.
What hurts a home appraisal?
Comparable homes or comps are one of the most important factors affecting appraisal value. An appraiser will take a close look at recently sold, nearby homes with similar bedrooms, bathrooms, updates and square footage to your home. The value of these homes can provide baselines for appraisal value.