How to Deal with the VA Appraisal
Whether you’re a veteran buyer using your VA home loan or a homeowner looking to sell your home to a buyer using their VA home loan, understanding the VA appraisal process is crucial. In this blog post, we’ll break down everything you need to know to navigate through this process and make sure that it goes as smoothly as possible.
What is a VA appraisal?
When you’re buying a home with a VA loan, the Department of Veterans Affairs requires the property to meet a certain standard. To ensure this, they conduct a VA appraisal. This appraisal assesses the property’s value, condition, and safety to ensure that it is a suitable investment and that the value you’re paying is equal to the fair market value.
What are some unique requirements of VA appraisals?
VA appraisers have some unique requirements that you should be aware of. For instance, they focus on the property’s safety. If they identify any electrical problems, they may require them to be fixed before the loan can be approved.
What if my VA appraisal comes in low?
If your VA appraisal comes in lower than your purchase price, you have three options:
- Bring the cash difference to the table and proceed with the purchase.
- Negotiate with the seller to lower the price to the appraised value.
- Walk away from the purchase and keep your earnest money deposit.
If you have a third-party financing addendum in your contract, you may also have the option to walk away from the purchase if the appraisal comes in low.
Tips for dealing with the VA appraisal process
Here are a few tips for dealing with the VA appraisal process:
- Make sure that the property is in good condition before the appraisal is conducted. This includes fixing any minor repairs and making sure that the property is clean and tidy.
- Provide the appraiser with all of the necessary documentation, such as comparable sales in the area and any recent renovations or improvements that have been made to the property.
- Be prepared to negotiate with the seller if the appraisal comes in low.
By following these tips, you can help to ensure that your VA appraisal goes smoothly and that you’re able to get the home of your dreams.