Introduction

In this post, we’re diving into the VA appraisal process, a critical step in utilizing your VA home loan benefit. Many veterans have concerns about appraisals – from how long they take, to worries about under-valuation. It’s time to dispel myths and shed light on the truth behind these appraisals.

Understanding the VA Appraisal Process

The VA appraisal is a vital step in the home-buying process for veterans. Unlike a home inspection, the VA appraisal ensures the property meets the VA’s Minimum Property Requirements (MPRs), ensuring the home is safe, sanitary, and structurally sound. This process involves:

1. Assignment of a VA Appraiser: Once your loan application is submitted, a VA appraiser is assigned to assess the property.
2. Property Assessment: The appraiser evaluates the property against MPRs and determines the fair market value.
3. Notice of Value (NOV): An NOV is issued, stating the property’s value and any required repairs.

Common Concerns and Misconceptions

• “VA Appraisals Undervalue Homes”: Contrary to this belief, VA appraisals aim to reflect the fair market value. They are not inherently lower than appraisals for conventional loans.
• “VA Appraisals Take Too Long”: Typically, VA appraisals are completed within 5 to 10 days. Delays, if any, are usually due to high volumes or location-specific issues.
• “VA Appraisals are More Stringent”: While VA appraisals focus on ensuring properties meet MPRs for the safety of veterans, they are not necessarily stricter than conventional appraisals.

What if the Appraisal Comes in Low?

• Tidewater Process: This allows for the submission of additional data if the appraiser believes the property value may come in lower than the sale price.
• Reconsideration of Value (ROV): If the NOV remains unchanged, an ROV can be requested to review additional market data.

Your Rights in the VA Appraisal Process

– VA Protection Clause: Ensures your right not to purchase if the appraisal comes in below the sales price.
– Negotiation Options: If the appraisal is low, you can negotiate with the seller or pay the difference in cash at closing.

Conclusion

The VA appraisal process is designed to protect veterans by ensuring they invest in properties that are safe and sound. Understanding this process can demystify concerns and empower you in your home-buying journey. Remember, owning a home is not just a dream; it’s a benefit you’ve earned through your service.