Question #2 – How much is your home really worth?
Woe to the unlucky homeowner who applies for a refinance, only to find his home is worth so much less than his mortgage owed, the refinance will require him to bring money to the table. Do your homework before you apply.
If you know a realtor with whom you have a good relationship, you might ask them to give you a quick 3-up comp sheet as part of your application portfolio.
Other sources for your investigation are zillow.com, cyberhomes.com and ditech.com. Look at how these companies put their numbers together
- Are there multitudes of foreclosure sales included?
- How far back are the comperable sales?
- Do they include listing/asking prices on nearby homes, which may be like yours but which have not yet sold?
Put together a reasonable picture before the application. As tied as you are to your home, an assessor will be much more objective in the loan process.