What is Tidewater on VA appraisal?
Tidewater on VA appraisal is a term used to describe the process where the VA appraiser notifies the lender if the appraised value of a home is expected to be lower than the contract price. This gives the lender and the borrower an opportunity to provide additional information to help support the contract price before a final appraisal report is submitted.
When a Tidewater notice is issued, the lender typically has a short window of time, usually 48 hours, to submit additional comparable properties or make other arguments to support the contract price. This process is designed to ensure that VA loans are based on fair market values and to protect veterans from overpaying for a home.
FAQs
1. What triggers a Tidewater on VA appraisal?
When the VA appraiser determines that the appraised value of the home is lower than the contract price, they will issue a Tidewater notice to notify the lender.
2. Can borrowers be involved in the Tidewater process?
Borrowers are typically not directly involved in the Tidewater process, but they can work with their real estate agent and lender to provide additional information or support for the contract price.
3. Does a Tidewater notice mean the home loan will be denied?
Not necessarily. The Tidewater notice gives the lender and the borrower an opportunity to provide additional information to support the contract price before a final appraisal report is submitted.
4. How often does a Tidewater issue occur?
Tidewater issues are relatively rare, but they can happen if the appraised value of the home is significantly lower than the contract price.
5. What happens if the lender cannot support the contract price during the Tidewater process?
If the lender cannot provide enough evidence to support the contract price during the Tidewater process, the loan may be denied or the borrower may need to renegotiate the purchase price with the seller.
6. Can veterans appeal a Tidewater notice?
Veterans may not appeal a Tidewater notice directly, but they can work with their lender to provide additional information or make arguments to support the contract price.
7. How long does the Tidewater process typically take?
The Tidewater process usually lasts around 48 hours, during which the lender must provide additional information or support for the contract price.
8. Can a Tidewater notice delay closing on a home?
If a Tidewater notice is issued and the lender cannot support the contract price, it can potentially delay the closing on a home if the purchase price needs to be renegotiated.
9. Are VA appraisers required to issue a Tidewater notice?
VA appraisers are not required to issue a Tidewater notice, but they will do so if they believe the appraised value of the home is significantly lower than the contract price.
10. How can borrowers prepare for a Tidewater notice?
Borrowers can work with their real estate agent and lender to provide thorough documentation and support for the contract price to help prevent a Tidewater issue.
11. Can Tidewater notices be issued for refinancing loans?
Tidewater notices are typically issued for purchase loans, but they can also be issued for refinancing loans if the appraised value is lower than expected.
12. Does the Tidewater process affect the VA appraisal fee?
The Tidewater process does not typically affect the VA appraisal fee, as it is part of the appraisal process to ensure fair market values for VA loans.