Q&A: Refinance mortgage after garage is converted to living space without permit?

by stirwise

Question by Susan: Refinance mortgage after garage is converted to living space without permit?
Last year, we coverted our one car garage to a living space by enclosing it, adding a window, finishing the floor. No plumbing is added. From outside, it still looks like a garage. We didn’t apply for a building permit. We are thinking of refinancing the mortgage. Note: It is in New York State. I am wondering if the converted garage will casue any issue during apraisal, title search, title insurance,etc. Thanks in advance.

Best answer:

Answer by Meghan
It shouldn’t cause a problem, but in some areas can actually lower your property values instead of raising it. Since you already on the home, a title search, title insurance, etc is not neccesary. You are refinancing a mortgage, not getting a new one.

What do you think? Answer below!