Appraisal question for refinance

[Benny2019]

I would like to refinance my home to make some repairs.  I need a new roof (my roof is leaking) and I would like to remodal a bedroom.   I purchased the home 2 years ago.   One loan agent said that I should fix my roof first, then refinance.  He said if I go through with the refinance, the appraiser would say the same thing.  Is this accurate?  I thought it would appraise lower than average, but i would still be able to refinance.  I appreciate him telling me this before complete going through the process.  However, I am frustrated that I didn't ask first before doing a hard inquiry.

Equity I have based on Zillow is $306,100 (max cash out $126,260 with 80% LTV), and the low end is 262,900 (max cash out $89,309 80% LTV).  I also don't want to take the full amount.

Thank you in advance.

Mortgage scores 724/777/753

[SouthernCredit]

Not sure about your market, but there are plenty of lenders in mine that will do appraisal waivers on a refi, especially in a hot market. I did a refi in 2020 and didn't need an appraisal. You may want to shop around with some lenders to see if that's an option for you. 

[CreditFun]

@Benny2019 

Simple, go to a broker, see if you can get an appraisal waiver, if not do a FNMA homestyle loan and include the roof in the refinance.

[VALoanMaster]

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@Benny2019 wrote:

I would like to refinance my home to make some repairs.  I need a new roof (my roof is leaking) and I would like to remodal a bedroom.   I purchased the home 2 years ago.   One loan agent said that I should fix my roof first, then refinance.  He said if I go through with the refinance, the appraiser would say the same thing.  Is this accurate?  I thought it would appraise lower than average, but i would still be able to refinance.  I appreciate him telling me this before complete going through the process.  However, I am frustrated that I didn't ask first before doing a hard inquiry.

Equity I have based on Zillow is $306,100 (max cash out $126,260 with 80% LTV), and the low end is 262,900 (max cash out $89,309 80% LTV).  I also don't want to take the full amount.

Thank you in advance.

Mortgage scores 724/777/753

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Is there visible evidence of the roof leak on the inside of your home?

If not, it's likely the appraiser would never know your roof has any issues.

Lenders don't just "do" appraisal waivers. The Automated Underwriting System has to issue an appraisal waiver and that's typically not going to happen on a cash-out refinance or a renovation loan.

[Benny2019]

Thank you for your response.  There is visible water damage.  I decided to patch the roof and repair the small area before refinancing.  

[VALoanMaster]

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@Benny2019 wrote:

Thank you for your response.  There is visible water damage.  I decided to patch the roof and repair the small area before refinancing.  

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That's probably the best way to go.