Trying for home equity loan

1 Reply


I’m currently considering applying for a home equity loan to consolidate a little debt and provide more funds for investing. I’m concerned with how much my property will appraise for though. 

I purchased a single family two years ago and it had appraised for $127k. Since then I have refinished the hardwood floors, renovated the kitchen, renovated the bathroom, replaced an exterior door, and fresh paint throughout. As of now I owe $118k and the good ole zestimate is $180k. 

Looking at the comps and seeing appraisals frequently with my job, I feel that the zestimate is reasonable in my area. However, lenders like to do drive by appraisals for a home equity and I wonder how much the lower appraisal from two years ago will hurt a current appraisal. 

Will it have a drastic impact and I would be much better off paying for a full appraisal? Or will a well maintained exterior with good comps carry some weight? 

Thanks for any feedback. 

@Joshua B. let me start by saying that the HELOC is a great way to get funds to invest with. My career really began because I was able to use my primary home equity to purchase my first four unit in Lyons, IL. It was a great buy, and allowed me to rapidly expand my portfolio.

The lender relationship is everything in my opinion. My lender has helped me get the value I need out of my home both times that I needed to cash out equity. I would also get comps from our local realtor. I personally presented the appraiser with comps when he came to do my home last year. Hope this helps!

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