What if my VA appraisal comes in low?

What if my VA appraisal comes in low?

If your VA appraisal comes in low, it can be a stressful situation. However, there are steps you can take to address this issue and proceed with the home buying process.

One of the first things you can do if your VA appraisal comes in low is to try to negotiate with the seller. You can ask the seller to lower the price to match the appraised value, or you can try to meet somewhere in the middle.

Another option is to get a second opinion. You can request a second VA appraisal to see if the value comes in higher. Keep in mind that you may need to pay for this second appraisal.

If the second VA appraisal also comes in low, you can try to challenge the appraisal. You can gather evidence of comparable properties in the area that support a higher value and submit this information to the VA for reconsideration.

Ultimately, if your VA appraisal comes in low and you are unable to reach an agreement with the seller or the VA, you may need to walk away from the deal. It’s important to weigh your options and consider what is best for your financial situation.

FAQs:

1. What factors can contribute to a low VA appraisal?

Several factors can contribute to a low VA appraisal, such as a lack of comparable properties in the area, a declining housing market, or issues with the property itself.

2. Can I still buy the home if the VA appraisal comes in low?

Yes, you can still buy the home if the VA appraisal comes in low. However, you may need to come up with the difference in cash, negotiate with the seller, or explore other financing options.

3. Will a low VA appraisal affect my loan approval?

A low VA appraisal can affect your loan approval, as lenders typically use the appraised value to determine how much they are willing to lend you. You may need to come up with additional funds or explore other financing options.

4. Can I contest a VA appraisal?

Yes, you can contest a VA appraisal if you believe it is inaccurate. You can gather evidence of comparable properties or any discrepancies in the appraisal report and submit this information for reconsideration.

5. How long does it take to get a second VA appraisal?

The timeline for getting a second VA appraisal can vary, but it typically takes a few weeks. You may need to coordinate with the VA and pay for the appraisal yourself.

6. Can I order a second VA appraisal on my own?

Yes, you can order a second VA appraisal on your own, but you will need to follow the VA’s guidelines and pay for the appraisal yourself. Make sure to discuss this option with your lender as well.

7. What happens if the second VA appraisal comes in lower?

If the second VA appraisal comes in lower than the initial appraisal, you may need to explore other financing options, negotiate with the seller, or consider walking away from the deal.

8. Will a low VA appraisal impact the seller’s ability to sell the home?

A low VA appraisal can impact the seller’s ability to sell the home, as it may limit the pool of buyers who can secure financing for the property. The seller may need to lower the price or explore other options.

9. Can I request a copy of the VA appraisal?

Yes, you can request a copy of the VA appraisal for your records. This can help you understand how the value was determined and whether there are any discrepancies that need to be addressed.

10. Can the seller challenge a low VA appraisal?

Yes, the seller can challenge a low VA appraisal if they believe it is inaccurate. They can provide evidence of comparable properties or other factors that may support a higher value for the home.

11. Will a low VA appraisal affect the home’s resale value in the future?

A low VA appraisal can potentially impact the home’s resale value in the future, as it may set a precedent for future appraisals. It’s important to consider how this could affect your investment in the long term.

12. Can I cancel the deal if the VA appraisal comes in low?

Yes, you can cancel the deal if the VA appraisal comes in low. However, you may need to review the terms of your purchase agreement and consult with your real estate agent or attorney to understand your options.

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