VA Loans - Appraisals
Please use the links below to find out more about appraisals in relation to VA Loans.
- Who orders the VA appraisal?
- How much is the fee for ordering an appraisal?
- When is the appraisal ordered?
- Can I use the same appraiser that did an appraisal for me before?
- Are VA appraisers harder on appraisals than conventional appraisers?
- What sort of things could be a problem with the appraisal?
- Do the improvements have to be done before closing on my VA loan?
- What happens if the appraisal comes in lower than the sales price?
- Was your question not answered?
Who orders the VA appraisal?
Your lender will order the VA appraisal. He or she will submit the appraisal request through the online portal of the Department of Veterans Affairs. The Department of VA then randomly assigns an appraiser to your property. Contact a loan specialist for more information about appraisals or to get started with your loan.
How much is the fee for ordering an appraisal?
The fee for a VA appraisal is state mandated and set in each state. It is normally between $300 and $400 depending on the state. Often times this fee will be required to be paid in advance of loan closing.
When is the appraisal ordered?
The appraisal is ordered as soon as you have a contract on a home. In the case of a refinance it is ordered as soon as you give the okay. It is recommended that the appraisal is ordered as soon as possible to avoid any potential delays from the appraisor.
Can I use the same appraiser that did an appraisal for me before?
With a VA loan, the VA randomly assigns an appraiser to your new property to prevent any conflict of interest on the loan. In order to prevent this conflict, it is not possible to request an appraiser.
Are VA appraisers harder on appraisals than conventional appraisers?
Not necessarily. VA appraisers are trained and approved by the VA to represent them. They will give you a true value of the home based on comparable listings in the area. In order to protect you as the buyer, the VA does require any significant problems with the property to be repaired before closing.
What sort of things could be a problem with the appraisal?
Many things can affect an appraisal and be required to be repaired before a VA loan can close. Many are safety issues, such as stairs with no railings or back doors without decks. The home cannot be in disrepair. It needs to be livable and in decent condition.
Do the improvements have to be done before closing on my VA loan?
Yes, for the most part all repairs noted on an appraisal have to be completed before closing on the new loan. Sometimes if circumstances arise beyond your control the lender will allow you to escrow for a repair and take care of it when weather or other factors permit.
What happens if the appraisal comes in lower than the sales price?
If this happens there are a few things that can be done before the loan is dead in the water. First of all, the VA will allow you to do what is called a reconsideration of value and request the value to be higher based on other comps not used in the appraisal. Other things that can be done are for you to possibly take a slightly higher rate and have your lender credit you back some money to offset the difference. If you cannot come up with the money to cover the difference yourself, the seller would ultimately have to come down on the price to what the house appraised at. The VA loan can only go up to the lower of the sales price of the appraised value.
VA LOAN SPECIALIST
If you have questions or if you want to determine if a Veteran Home Loan is actually the best financial decision for you, you may get advice from a VA mortgage specialist online or call 800-405-6682.
Get Started With Your VA Loan Request
Take the first step toward your VA loan by getting in touch with a VA specialist.
