In most cases, the lender gets the appraisal done and the borrower pays for it at closing.
In 2018, the average cost of a home appraisal was $330.
Is appraisal needed for home equity loan?
In a word, yes. The lender requires an appraisal for home equity loans—no matter the type—to protect itself from the risk of default. If a borrower can’t make his monthly payment over the long-term, the lender wants to know it can recoup the cost of the loan. An accurate appraisal protects you—the borrower—too.
What fees are associated with a home equity loan?
Lenders charge closing costs to cover the expenses associated with originating the loan. These expenses include credit report fees, title search, property appraisal, attorney’s fees, and underwriter costs. Overall, closing costs on a home equity loan can vary from 2% to 5% of the loan amount.
How can I get a home equity loan without an appraisal?
While you won’t get a home equity loan without some form of valuation, you may not need a new appraisal. If the equity loan is with your existing lender and your initial mortgage is less than six months old, the lender will use the existing appraisal.
What hurts a home appraisal?
Comparable homes or comps are one of the most important factors affecting appraisal value. An appraiser will take a close look at recently sold, nearby homes with similar bedrooms, bathrooms, updates and square footage to your home. The value of these homes can provide baselines for appraisal value.
How long does it take to close on a home equity loan?
2 to 4 weeks
Can you take equity out of your home without refinancing?
If you don’t have more than 20 percent equity, then you are unlikely to qualify. If you do have at least 20 percent, the most common ways to tap the excess equity are through a cash-out refinance or a home equity loan. For a cash-out refinance, you refinance your current mortgage and take out a bigger mortgage.