A VA appraisal is a critical step in funding a VA loan. Let’s examine the appraisal process and highlight the key points every veteran should understand.
The VA lender is responsible for ordering the appraisal. This process normally takes place just after the borrower has submitted their entire loan package.
The Department of Veteran’s Affairs will assign a VA loan appraiser. In order to prevent appraisal fraud, the homebuyer will not be able to choose which appraiser performs the work.
The approximate cost of a VA loan appraisal is around $400.00. This fee is state-regulated so it depends on the location of the home sale. The VA loan appraisal fee, in most cases, must be paid before the VA loan is closed.
When dealing with appraisals, the financing can be delayed if the property is not up to par. VA appraisal guidelines can be found on the Veterans Affairs website. These rules discuss the particular instances that could cause a home to appraise for less than the sale price. In order for a VA loan to fund, The appraisal must meet or exceed the purchase price.
After a VA loan appraisal is conducted you will receive a CRV (Certificate of Reasonable Value) which will be based on the VA loan appraiser’s estimate of the property’s value.
http://nobsvaloans.com/2009/06/va-loan-appraisals/
Don’t try to order your own VA appraisal!
The VA lender is responsible for ordering the appraisal. This process normally takes place just after the borrower has submitted their entire loan package.
The Department of Veteran’s Affairs will assign a VA loan appraiser. In order to prevent appraisal fraud, the homebuyer will not be able to choose which appraiser performs the work.
The approximate cost of a VA loan appraisal is around $400.00. This fee is state-regulated so it depends on the location of the home sale. The VA loan appraisal fee, in most cases, must be paid before the VA loan is closed.
When dealing with appraisals, the financing can be delayed if the property is not up to par. VA appraisal guidelines can be found on the Veterans Affairs website. These rules discuss the particular instances that could cause a home to appraise for less than the sale price. In order for a VA loan to fund, The appraisal must meet or exceed the purchase price.
If your home does not appraise this could be why
- The home is not in livable condition
- The home is in poor condition-if there are repairs needed they must be completed before the VA loan is closed.
- There are safety issues with the home; lacking a home foundation, no railings on a stairway; etc.
After a VA loan appraisal is conducted you will receive a CRV (Certificate of Reasonable Value) which will be based on the VA loan appraiser’s estimate of the property’s value.
If your appraised value is low, take these actions.
- Negotiate the sale price of the house with the seller in order bring the price down to meet the VA loan appraisal amount.
- Make a down payment to cover the difference. (I only recommend doing so if you have a home you can’t pass up.)
- Request a “Reconsideration of Value” if there were new comps and additional information that would raise the value of the home, which were not available at the time of the original VA loan appraisal.
http://nobsvaloans.com/2009/06/va-loan-appraisals/
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