What is a VA appraisal looking for?
A VA appraisal is looking to determine the fair market value of a property to ensure that it meets the minimum property requirements set by the Department of Veterans Affairs.
When it comes to obtaining a mortgage backed by the Department of Veterans Affairs (VA), one crucial step is the VA appraisal. This appraisal differs from a conventional appraisal in that it has specific requirements set by the VA to protect both the buyer and the lender.
What are some common issues that may arise during a VA appraisal?
Common issues that may arise during a VA appraisal include safety hazards, structural deficiencies, and pest infestations. These issues can impact the property’s value and may need to be addressed before the loan can be approved.
Does the VA appraisal focus on cosmetic issues?
While the VA appraisal does take into consideration the overall condition of the property, it primarily focuses on structural and safety issues rather than cosmetic ones.
What are the minimum property requirements set by the VA?
The minimum property requirements set by the VA include standards for safety, structural integrity, and sanitation. These requirements are designed to ensure that the property is suitable for occupancy.
Can a borrower request repairs to be made based on the VA appraisal?
Yes, a borrower can request repairs to be made based on the VA appraisal. However, it is ultimately up to the seller to decide whether or not they are willing to make the requested repairs.
Does a VA appraisal determine the purchase price of a property?
While a VA appraisal does provide an estimated value of the property, it does not determine the purchase price. The purchase price is typically negotiated between the buyer and seller.
How long does a VA appraisal take?
A VA appraisal typically takes around 10-14 days to complete. However, the timeline can vary depending on factors such as the property’s location and the appraiser’s workload.
Who pays for the VA appraisal?
The buyer is generally responsible for paying for the VA appraisal as part of the closing costs. However, some lenders may offer to cover the cost of the appraisal as a promotion.
What happens if the property fails to meet the VA appraisal standards?
If a property fails to meet the VA appraisal standards, the buyer and seller can negotiate repairs to bring the property up to code. If an agreement cannot be reached, the sale may fall through.
Can a borrower request a second VA appraisal?
Yes, a borrower can request a second VA appraisal if they believe the first appraisal was inaccurate or unfair. However, there may be additional costs associated with ordering a second appraisal.
Does the VA appraisal take into account recent home sales in the area?
Yes, the VA appraisal takes into account recent home sales in the area to determine the property’s value. This helps ensure that the property is priced appropriately based on comparable sales.
Can a property be appraised lower than the purchase price?
Yes, a property can be appraised lower than the purchase price. If this happens, the buyer may need to come up with additional funds to cover the difference or renegotiate the purchase price with the seller.