When you first submit your loan application, your loan officer will run the application through what is known as an automated underwriting system, or AUS. Within moments after submission through the AUS, a list of items that are needed for a full approval is listed. Paycheck stubs, bank statements, and the like. But there may be a need for a full appraisal.
Lenders use the appraisal to arrive at a value the lender will use during the approval process. The appraisal can be something as simple as a desk review, where the lender reviews recent sales of similar properties in the area. Or, there can be a field review or a ‘drive-by’ where the appraiser goes out and drives by the property for a look. Finally, it might determine that there is a need for a full appraisal, with photos. With a full appraisal, there are some things you can do to help support the final value.
The first thing to do is to boost the exterior look of the property, or ‘curb appeal.’ This means keeping your lawn trimmed and free of debris. You want to make your property as attractive as possible from the street. The appraiser will begin by viewing the exterior of the home. Having a nice curb appeal is a good starting point for the appraiser. The appraiser will use the sales contract as the starting point for value, and the appraisal will justify that sales price.
Next, make sure your home is nice and tidy on the inside. You should think about having it professionally cleaned. Need some paint touch-ups? Floors shined? Any spots on the carpet need to be fixed, too. The kitchen is typically the starting point for most potential buyers so shiny up those appliances and clear off the countertops. Clear areas. Some sellers even put some of their furnishings in storage to open up the spaces.
You may be asked to leave the home while the home is being appraised but that’s completely up to you and the appraiser. If there are some things that would not be known to the appraiser, let the appraiser know. For example, have there been any recent upgrades in the home? New appliances? Bring these up to your appraiser. There may also be a For Sale by Owner home in your neighborhood that would support your value. FSBOs won’t show up in the multiple listing service.
