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I have already listed my home with a realtor at a certain price. Now before offers pour in if I keep the house as rental property and then refinance it, will the appraisal done to find out the LTV need to take into account the listing price of the property. Or should the appraisal include just the usual comps analysis? I have already done a previous appraisal for more than the current listing price and may be I can get another appraisal done at higher range if the listing price isn't considered. Any advice will be appreciated.

helping_user · Posted: Wed Jul 18, 2007 5:56 am Post subject: RE: appraisal before refinance

Welcome matilda.

The appraiser may ignore the current listing price of the home. This is because it is not related to the actual market value. But lenders may not agree to offer you a loan as the home has been already listed and you're refinancing after that. However, there are lenders who may be willing to refinance and they may also ask for a prepayment penalty in case you sell the home or pay down the mortgage debt prior to the end of the loan term.

Thanks.

mikeshapiro · Posted: Wed Jul 18, 2007 5:42 pm Post subject:

Helping_users is right.

The appraiser will not consider the price you ask for the property into the appraisal, except to note that the home is currently listed for sale for X amount.

You cannot have the home listed for sale and refi at the same time. The lender will require it is taken off the market before the appraiser goes out there. In some cases the lender may require you wait a certain number of days before you can refi because you had just considered selling it.

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