We often get asked what to expect from a VA appraisal when you’re purchasing a home with your VA Home Loan. It’s a good question, because if you are new to buying homes and using your VA loan benefits, then this is an area that can be misunderstood and result in frustration or disappointment. Fear not! We will make sure that you don’t walk into your VA appraisal unprepared. Before we dive in learn everything that you need to know about purchasing a home with your VA Home Loan in our free education program. Request to join Savvy Veteran Homebuyer.
- Your home appraisal will be conducted by a licensed appraiser.
VA Appraisers are specifically trained in VA Home Loan condition guidelines. The purpose of their report is designed to confirm that the purchase price agreed upon by both parties reflects the market value of the home. This protects the mortgage lender who is funding your VA Home Loan from losing money.
- The appraiser will ensure the property’s condition meets VA lending guidelines.
If the property fails to meet the minimum condition requirements the appraiser will outline the repairs that must be made to the property for it to be eligible for VA financing. The appraiser will want to visit the property to ensure the proper repairs have been made and to amend their original report.
- The appraiser will review comparable sales in your neighborhood and other properties in the area that have recently sold or are currently on the market
Comparable home sales will be based on condition, upgrades, square footage, lot size, and improvements. Typically the listing agent will provide a report to the appraiser to validate the purchase price that was agreed upon by the buyer and seller. If the appraisal of the home does not meet the purchase price value the VA Appraiser will issue a “Tide Water” which indicates to both parties that they must submit additional documentation for value to be reconsidered OR the value of the appraised property will be short of the agreed purchase price. This can be a stress point in the transaction for all parties involved, but typically buyer, seller, and the real estate professionals are able to coordinate to find an agreeable solution in light of the new findings.
- If you’re not happy with their assessment, you can request another one from a different company
If you do not like the outcome of your VA Appraisal you can appeal the valuation with the specific appraiser. If the appraiser does not choose to amend his appraisal valuation you can also appeal directly to the VA, both appeals will take time to process and can happen with the assistance of your real estate agent and VA mortgage lender. The outcome will depend on the strength of the proof provided to support your appeal.
Don’t let the appraisal process scare you. The majority of VA appraisals go off without a hitch, but at least you now know what to expect and how to protect yourself if the appraisal doesn’t come out in your favor. For more information about buying a home as a Veteran join Savvy Veteran Homebuyer to join hundreds of aspiring military homeowners just like you!