11 Nov Understanding VA Home Appraisals
The Value of a VA Home Appraisal
For buying a home on a mortgage, home appraisal is a mandatory part of the process. For those who wish to get their mortgage by a loan that comes with the backing of the VA or the Veterans Affairs of the United States, there are additional requirements as well. These guidelines are there to help make the process safer for you and the lender.
As a part of the process, it is mandatory for an appraiser licensed by the VA to appraise your prospective home. Read on to know more about what the exact requirements, process, and implications of this whole endeavor are.
Requirements for an appraisal by the VA
In a VA Appraisal, you do not need to do any extra work. It is the job of your lender to file as well as arrange for the appraisal for your home. The specifics of this go as follows:
- Every state comes with a fixed amount for the fee, generally around $300-$400.
- You would have to submit this fee before your loan is closed.
- To prevent any kind of fraud, you do not get to select your appraiser, and the VA randomly assigns one to every case.
- To avoid any kinds of delay in closing the deal, you should make sure that your appraisal is requested for as soon as possible post the submission of your loan package.
It is the job and training of these appraisers to evaluate the real value of your prospective home, with respect to the other comparable homes that there are in the area. After the completion of this process, you get a CRV or a Certificate of Reasonable Value, which indicates the amount that your home is worth as per your appraiser. To get your loan approved, this amount must be equal or greater than the sale price.
An unfavorable appraisal and what to do in such cases
If your home does not get a good appraisal, which means that came for less than the sale price, you need not panic. This can happen due to a variety of reasons that may include its condition, potential safety concerns, and even an unrealistic sale price.
If such a situation occurs, you can follow options like these to get the same house:
- If there were associated safety concerns or conditions associated with the home, then your seller can do the requisite repairs to increase its value. A Reconsideration of Value can then be done to once again get the value checked keeping the new changes into account.
- You can also negotiate with the seller to get a lower price if the pricing was unrealistic for the kind of home and its location.
Before you finalize any purchase, remember to get it appraised by the VA. It will not only help you get a fair price but also tell you more about the kind of home that you are going to live in.