What is a VA house appraisal?
A VA house appraisal is an assessment of a property’s value conducted by a professional appraiser approved by the Department of Veterans Affairs (VA). This appraisal helps determine the fair market value of the home being purchased with a VA home loan.
1. Why is a VA house appraisal necessary?
A VA house appraisal is necessary to ensure that the property being purchased with a VA home loan is worth the amount being financed. This protects both the borrower and the VA from overpaying for a property.
2. Who hires the appraiser for a VA house appraisal?
The VA assigns an appraiser through their own system to conduct the appraisal for a VA house loan. The appraiser must be VA-approved to perform the appraisal.
3. What factors does the appraiser consider during a VA house appraisal?
The appraiser considers factors such as the home’s size, condition, location, comparable sales in the area, and any recent renovations or upgrades made to the property.
4. How does a VA house appraisal affect the loan amount?
The results of the VA house appraisal can affect the loan amount approved by the lender. If the appraisal comes in lower than the agreed-upon purchase price, the lender may only finance up to the appraised value.
5. Can a borrower choose their own appraiser for a VA house appraisal?
No, borrowers cannot choose their own appraiser for a VA house appraisal. The VA has a network of approved appraisers that are randomly assigned to ensure impartiality.
6. How long does a VA house appraisal process take?
The VA house appraisal process typically takes a few days to a week to complete. However, delays can occur if there are any issues with the property or discrepancies in the appraisal report.
7. Can a borrower challenge the results of a VA house appraisal?
Borrowers can challenge the results of a VA house appraisal if they believe there are errors or inaccuracies in the appraisal report. However, the process for challenging an appraisal can be lengthy and may not always result in a change in the appraisal value.
8. What happens if the VA house appraisal comes in lower than the purchase price?
If the VA house appraisal comes in lower than the purchase price, the borrower may need to renegotiate with the seller to lower the price or come up with additional funds to cover the difference in value.
9. Can a borrower use a previous appraisal for a VA loan?
In most cases, a previous appraisal cannot be used for a VA loan. The VA requires a new appraisal to ensure that the property’s value has not significantly changed since the previous appraisal.
10. What happens if a property fails to meet the VA’s minimum property requirements during the appraisal?
If a property fails to meet the VA’s minimum property requirements during the appraisal, the borrower may need to address any issues before the loan can be approved. This could include repairs or corrections to bring the property up to VA standards.
11. How much does a VA house appraisal cost?
The cost of a VA house appraisal can vary depending on the location and size of the property. On average, a VA house appraisal can cost between $300 to $500.
12. How long is a VA house appraisal valid for?
A VA house appraisal is typically valid for up to six months. If the appraisal expires before the loan closes, a new appraisal may be required.