Refinancing Your Mortgage After Building a Garage
The housing market is picking up which is making it possible to refinance again. In previous years it was hard to get a loan from a reliable institution at a good rate. Now with both the economy and housing market back on its feet you should consider refinancing. Make sure that you are ready to commit to extending the payments on your mortgage. If you are close to paying off your home then you may want to think twice before you refinance. Yet if you just remodeled your home and included a garage for the sole purpose to refinance then there are procedures you want to follow.
A Garage Raises Property Value
A home without a garage is worth less because there is less desire for people to live in it. Banks look at the landscape of your home and determine the value based on every aspect. Even if you do not plan to sell keep in mind that appraisers will look at the overall value of the home and not necessarily what you find valuable. A garage gives a place for people to store items, create a workbench, and park a vehicle. Before you start the process of refinancing your home, check to see if adding a garage is in your budget. You may significantly increase the value of your home with this new addition.
Build a Big Garage
The bigger the garage the more it is going to help your home rise in value. Hire a contractor that is qualified to build a garage that meets your needs. Figure out how much space you can afford to use from your property to add a new garage. Build a garage that is advanced and as big as possible. This will catch the attention of appraisers to help increase the property value of your home so that you can get the most possible out of refinancing.
Create a Presentable Look
In order to get an appraisal value for as much as possible you want to ensure that your home looks appealing. Before an appraiser comes to value your home make sure the garage construction is completely finished. Add items inside the garage to make it look presentable. You do not want appraisers to look at a bare open space in a garage. Show them how convenient it is to have a garage in your home.
Do Not Neglect Your Home
Do not focus on the garage alone. The garage is a good addition to your home that can help you get more with a refinance, but your home is just as important in this matter. Get rid of clutter in your home to make it feel more open and welcoming. You can store a lot of this clutter in boxes inside a garage. The appeal of a garage is that it does not have to look as presentable as the rest of your home. Take advantage of your new garage and add a section with boxes of items from your home. Garages are great storage places that can be used to clear clutter from your home.
Just because you have been turned down to refinance your home that does not mean you should quit. Read the documentation presented to you from the bank. Learn why you were not able to refinance your home and then make the necessary changes to help you get the money you need.