VA Home Loan Appraisal: What to Expect During the Process

The VA home loan appraisal is a critical step in securing a VA-backed home loan. This process ensures the property meets certain standards and is worth the purchase price. Understanding what to expect during the VA home loan appraisal can help you prepare and reduce any potential anxieties associated with it.

What is a VA Home Loan Appraisal?
The VA home loan appraisal is an evaluation performed by a VA-approved appraiser. The purpose is to determine the property's fair market value and ensure it meets the VA's minimum property requirements (MPRs). These requirements are in place to protect the borrower and ensure the property is safe, sound, and sanitary.

Who Orders the Appraisal?
The appraisal is typically ordered by the lender once they receive a signed purchase agreement or contract from the buyer. The lender will send the order to a VA-approved appraisal management company, which assigns an appraiser to the property.

What to Expect During the Appraisal
During the appraisal process, the appraiser will visit the property and conduct a thorough inspection. Here are key aspects to expect during this inspection:

• Exterior Inspection: The appraiser will examine the outside of the home for structural integrity, signs of damage, and overall curb appeal. They will assess the roof, siding, windows, and foundation.
• Interior Inspection: Inside the home, the appraiser will check rooms for adequate space, functionality, and condition. They will look for any necessary repairs that could affect the home’s value, such as plumbing, electrical systems, and HVAC.
• Comparative Market Analysis: The appraiser will also analyze comparable properties in the area, known as "comps," to determine the home’s market value. This involves looking at recent sales of similar homes nearby.

Minimum Property Requirements (MPRs)
VA appraisers check for specific MPRs to ensure that the property is suitable for living. These requirements include:

• Safe, secure, and structurally sound conditions.
• Functioning utilities (water, heating, and electricity).
• No significant health or safety hazards.
• Access to the property and its utilities.

Properties that do not meet these standards may require repairs before the loan can be approved. If issues arise during the appraisal, the lender may request that the seller address these concerns, or the buyer may negotiate repairs prior to closing.

Appraisal Timeline
The timeline for a VA home loan appraisal can vary, but it generally takes 1 to 2 weeks from the time the appraisal is ordered. Factors that might influence the timeline include the appraiser’s workload and the complexity of the property. Once the appraisal is completed, the lender will receive the report, which will influence the home loan process moving forward.

Understanding the Appraisal Report
After the appraisal, you will receive a report that includes the appraised value, a list of comparable properties, and any notes on the property’s condition. If the appraisal comes in at or above the purchase price, this is typically favorable for the loan approval. However, if the value is lower, the buyer and seller may need to revisit negotiations.

Conclusion
Totaling it up, the VA home loan appraisal is an essential step in the home-buying process that ensures the protection of both the lender and the borrower. By preparing for the appraisal and knowing what to expect, you can smooth the path toward obtaining your VA home loan.