When buying a home with a VA loan, many veterans ask, “What does a VA appraiser look for?” The appraisal process is a crucial step that ensures the property meets the necessary standards for safety, value, and marketability. Many veterans wonder what exactly a VA appraiser looks for during this process. This guide will help clarify the purpose of a VA appraisal, what appraisers evaluate, and how you can prepare for a smoother experience.
What is a VA Loan Appraisal?
A VA loan appraisal is required for all VA-backed loans and serves two main purposes:
- Valuation: To confirm the property’s fair market value, ensuring you don’t overpay.
- Safety and Marketability: To verify that the property meets the VA’s Minimum Property Requirements (MPRs), ensuring it’s safe, structurally sound, and livable.
The appraisal protects both the lender and the borrower, ensuring the property is a worthwhile investment.
Key Criteria Appraisers Evaluate: VA Minimum Property Requirements (MPRs)
1. General Property Requirements
- The property must be a single, marketable real estate entity.
- It must have safe and adequate pedestrian or vehicular access from a public or private street.
- Living spaces should include adequate areas for sleeping, cooking, dining, and sanitary facilities.
2. Health and Safety Standards
- Energy Efficiency: Note features like energy-efficient windows or appliances.
- Defective Conditions: Identify issues such as structural damage, termite infestations, or excessive dampness.
- Mechanical Systems: Ensure systems like heating, plumbing, and electrical are safe and functional.
3. Environmental and Location Concerns
- Check for hazards like sinkholes, flood zones, and environmental contamination.
- Evaluate proximity to airports or high-voltage power lines for potential noise or safety concerns.
4. Additional Property Features
- Roof and Crawl Spaces: Ensure the roof prevents moisture intrusion and crawl spaces are dry and ventilated.
- Water Supply: Verify access to safe, potable water and compliant sewage disposal systems.
- Drainage: Ensure proper grading to direct water away from the home’s foundation.
How a VA Appraisal Differs from a Home Inspection
It’s important to note that a VA appraisal is not the same as a home inspection. While the appraisal focuses on the property’s value and adherence to MPRs, a home inspection provides a detailed evaluation of the property’s condition and identifies potential issues.
For a more thorough understanding of why inspections are valuable, read our post: VA Loan Appraisal vs. Home Inspection: What You Need to Know.
Common Issues Appraisers Flag
Here are some examples of issues that might delay VA loan approval:
- Missing handrails on stairs.
- Peeling lead-based paint in homes built before 1978.
- Drainage problems causing water intrusion.
- Termite damage or signs of wood rot.
- Heating systems unable to maintain at least 50°F in plumbing areas.
How to Prepare for a VA Appraisal
Preparation can prevent surprises during the appraisal process. Use this checklist to get your home ready:
- Address Minor Repairs: Fix peeling paint, broken windows, and missing handrails.
- Ensure Accessibility: Provide clear access to attics, crawl spaces, and other areas the appraiser needs to evaluate.
- Check Safety Features: Verify that smoke detectors and railings are installed where required.
- Review Environmental Concerns: Resolve drainage issues and address any signs of pests or mold.
For a complete list of requirements, download our VA MPR Appraisal Checklist.
Conclusion
By understanding what a VA appraiser looks for, you’re protecting your investment and setting yourself up for success..
If you have questions about preparing for a VA appraisal or need guidance navigating the VA loan process, contact me today. I’m here to help veterans achieve their homeownership goals with confidence.
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