We have been in our home for over 5 years, have made the payments on time and have not thought twice about refinancing until the recent offer of lowering our interest rate became really appealing. It is usually a rule of thumb that unless you are reducing your rate by 1% or more it is not financially worth it to do so. This is of course if you are planning to remain at the same loan amount. If you are planning a cash-out refinance for other uses then it might make sense. You need to talk to your mortgage lender and work through the numbers. If you plan to proceed with the process, the first thing you need to do is have your home appraised. There are many things you can do to increase the value of your home and below are things that can help out.

Do your research – Check local real estate listings on-line and printed materials. They will list what homes in your area are for sale, what the asking price is and also the features. Some may even list ones that have sold – you’ve seen them with the big SOLD banner on the ad. Then contact your local real estate agent and find out what has recently sold and the final price. Compare your home by lot size, style, square footage and number of bedrooms and baths. This will give you a comparable price.

Communicate with your appraiser – Set a time and make sure you are available to meet personally with them. Make a list all the things you have added on and upgraded – like bathroom and kitchen features, windows, doors, custom built-ins, new flooring and striking landscaping. Also mention the positive things that are located near your home such as public transportation, parks, top schools and neighborhood programs. If you have the selling price for any of the homes in your area it is important to include that as well. Take the time to print all of these items out and have them available for the appraiser. You are more familiar with your surroundings and there are items that your appraiser may overlook.

Clean it up – Make the first impression a good one. You are selling your home to the appraiser. When they drive up the make sure the grass is cut, the weeds are gone, the trash is neatly placed in cans in the garage, the gutters are clean and your home is freshly power washed. If your deck or trim is old and faded take the time to add a fresh coat of stain or paint. When they enter your home it should be clean and organized. Clean off the counters, store the shoes and coats in a closet, make the beds and clean the bathrooms. If you have indoor pets, light a candle or spray a refreshing scent to cover any unpleasing odors. Replace any light bulbs or fixtures that are not working. If you have a leaky faucet, take the time to replace it. The appraiser will be measuring, taking photos inside and out, and opening closets and pantries so make sure everything is in its proper place. Your appraisal will not be based on your housekeeping skills but remember – a first impression is a lasting one and will go a long way when they are back at the office filling out their forms. You want them to have a good recollection not one of pet hair and dirty dishes!

When all this is done and the appraiser has completed your report you have the right to request a copy. Take the time to review it thoroughly and if something is listed incorrectly call the appraiser and request that it be reviewed and corrected. Once you receive your appraisal figure it is time for a discussion with your mortgage lender to discuss what options are available and then on to the title search.

Your home is one of the biggest investments you will ever make. Take the time to make yours shine so you get the best appraisal possible.

For more information on homeownership, mortgages, new homes and other home related topics visit www.houseplansandmore.com.