Repairs Before Refinancing My Mortgage?

Adam Ferguson

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Refinancing Repairs

Home repairs are often needed before a bank will refinance a mortgage for a homeowner.  There are many different repairs that a bank may require.  It will generally be determined by the home appraisal and what the appraiser comments on.  If the appraiser makes comments on the shingles of the roof it is almost certain that some repairs will be required prior to the closing of the refinance mortgage.  

In some cases the lender or mortgage company will ask for a cost to cure.  This generally means that a specialist can determine how much it will cost to fix the problem, and that money will be put aside in escrow to cover the repairs.  They may require a homeowner to fix things such as paint chips (possible lead paint), straps on a water heater and other simple repairs. This is just another way that the mortgage companies try to limit their risk when lending a homeowner money for a refinance mortgage.  

The best thing to do is take care of any minor repairs before an appraisal is done on your home.  This will reduce the time it takes to get your refinance mortgage funded and for you to start saving money. Appraisers will almost always comment on minor repairs that may be needed on your home.  If they are not taken care of prior to the appraisal, you may have to pay for the appraiser to come back out and verify that the repairs have been made, and you will generally pay a fee for that service.  

Keep repairs in mind the next time you are considering a refinance mortgage. It is always much easier to take care of them before the appraisal if possible.  If you are unsure then talk to your mortgage professional about possible repairs before the appraisal is ordered.  They will be able to explain the options to you.

You can often pay for any repairs needed with the equity that you pull out of your home when you finish your refi


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