Home Appraisal Process

What to expect of the home appraisal process when applying for a home equity loan or line of credit with Citizens Bank

Home equity is calculated by subtracting the remaining balance of your mortgage from the current value of your home and factoring in your loan-to-value ratio. Therefore, a home appraisal is needed in order for a lender to determine the value of your home and the amount of funds you are eligible to receive as part of the home equity loan and line of credit approval process. Use this guide to understand the home appraisal process with Citizens Bank.

Applying for a home equity loan or line of credit

If you are ready to take out a home equity loan or line of credit with Citizens Bank, you will be asked to answer a few questions online and a Home Loan Advisor will be in touch to help you complete an application. The application will require you to include the estimated value of your home in addition to the requested loan amount. Citizens Bank does not accept private appraisals, so we recommend utilizing tax assessment information or the purchase cost of your home to determine the estimated value of your property. Once you have submitted your application, you will be advised of the next steps: the home appraisal process.

Getting your home appraised

The first step of the home appraisal process begins with Citizens Bank requesting an examination of your home and property by an independent appraiser. The appraiser will contact you to schedule the visit. Once the appraiser has finished his or her inspection, he or she will research homes in your area and compare recent sales to determine the market value of your home. Once the final report is complete, your Home Loan Advisor will be notified of the appraiser's opinion of your home's value, which Citizens Bank will use to help determine the amount or size of the home equity line of credit or loan that you are qualified to borrow. If you are applying for a home equity line of credit, you may purchase a copy of the appraisal to have for your records. For a home equity loan in the first lien position (or for a mortgage) a copy of the appraisal will be provided to you at no cost as part of the application process.

Things an appraiser will look for

An appraiser will provide the opinion of value based on the condition, size, and location of your home. He or she will be looking for modern upgrades as well as building code compliance. Before entering your home, the appraiser will inspect the exterior and determine the condition of the foundation, roofing, siding and landscaping as well as porches or patios. If your home sits on a large amount of usable land, especially in comparison to other homes in the area, you will likely receive a higher appraisal value as potential homebuyers would find the extra space attractive. Next, the appraiser will examine the condition of the interior. They will take into account the structural support, as well as the heating, flooring, walls, square footage, and appliances.

Home appraisal costs

When deciding which bank to work with to access your home equity, ask if there are extra fees involved with the home appraisal. With Citizens Bank, you will not be charged for the home appraisal process unless you choose to purchase a copy of the appraisal. We will provide a certified, independent appraiser, and do not recommend using a private appraisal prior to applying.

Start the home equity loan or line of credit application process today

In addition to doing some research on your home's value, you should also estimate your borrowing need. Whether this is through quotes from contractors, examining college expenses or adding up medical bills, it's important to know the borrowing amount you want to request on your application. A Citizens Bank Home Loan Advisor can then help you find the best home equity loan or line of credit option for your needs. Get started today by answering a few questions online, and a Home Loan Advisor will be in touch to walk you through the home equity application process.

 

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