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How The Presence Of Mold Can Affect Your Refinancing Options


How The Presence Of Mold Can Affect Your Refinancing Options

Last Updated on April 6, 2015

As the financial crunch is at its peak, many people are looking for a number of means to refinance their home. In order to make the process smooth, they need to take a number of steps so that the higher authorities do not lay any sort of objection on their application. It is important to remember that the mortgage companies go for a thorough inspection and appraisal of your home before they approve your application.

Therefore you must be well prepared for it. You must never take this process lightly and start assuming that everything is fine. It is better if you inspect your home first. By doing do, you might come to know a number of serious problems in your home that you were unaware of before. For instance, there might be mold infestation in your home before you initiate the refinancing process. The best thing to do is to deal with the mold issue first before you apply for home refinancing. Following are some of the reasons why you should be doing this.

Mold infestation and its types

Mold is something that is natural but you certainly do not want to be in your home. There are different degrees of mold infestations. However, your first goal is to have a dwelling that is mold free before you commence the refinancing process. Mold infestations can be broadly categorized under three types and they include:

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• Pathogenic molds

Generally these types of mold cause infections. However, they tend to only affect people who have weak immune system. They also pose a serious threat to infants and pets at the same time. Hence if you have kids at home, you must not take the matter lightly.

• Allergenic molds

These types of mold create problems for the people who are asthmatic or have some allergy. Generally, people who are healthy are not affected by these types of mold. This doesn’t mean that you keep on infesting the mold in your home. They can actually be a nuisance at some stage and will surely affect your refinancing process.

• Toxigenic molds

This type of mold include ‘black mold’ and can actually be a deal breaker in the refinancing process. If you have this type of mold in your home, there is a high chance that the real estate transaction will not take place. Being the home owner, it is essential for you to take care of this mold as soon as possible. The presence of toxigenic molds can pose serious health problems.

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How does mold affect the value of your property?


Whenever a bank orders an appraisal and inspection of any property during the refinancing process, it is done by comparing its value to the value of the property nearby that has recently been sold. If you have mold present in your home, it can actually affect the entire process in the worse manner. It is believed that mold presence can slash down the value of the property. Banks show reluctance in financing loans for the homes that have mold present in them. As the value of your home will be considerably low due to mold, you will face a lot of problems when you go for refinancing. In order to avoid any sort of delay, it is better to get the mold inspection done beforehand. In case mold is found, you can easily look for some mold remediation service in your area and get the matter sorted out.

How does mold limit your refinancing option?

The experts claim that the odds of getting competitive mortgage refinancing rates for a home where mold infests are very slim. If the mold at your home has spread extensively, there is a high chance that you may not be able to refinance your home at all. Of course, this is something which you would never want to hear as you wait for your refinancing application to get processed.

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If you get a quality inspection done, you will get a better idea whether there is any serious type of mold present in your home or not. As mentioned above, once you know the presence of mold, you will be in a position to look for a solution. After you have settled the mold problem, you can process your application with full confidence and there will be a high chance that you get some amazing rates.

This means that presence of mold not only affects the health of individuals but can be a great hindrance while dealing with other daily activities. Apart from refinancing your home, you will have a hard time in selling your property out or giving out on rent. The prospective buyers never show willingness in opting for such houses where their health would be at stake. Once you start paying heed to this matter, you will easily avoid many pitfalls of the current mortgage market.