Ever Wondered How the VA Home Loan Appraisal Process Really Works?
The #1 gripe that I hear about the VA Home Loan process is the VA Appraisal.
People seem to say things like the VA Appraisers are much more conservative when it comes to appraising the property that the Veteran is seeking financing for.
Please allow me to say the following…misunderstandings like these actually hurt us as Veterans because sellers become reluctant to sell their homes to VA buyers because they’re afraid that their homes won’t appraise at value.
Before we discuss the actual appraisal, let’s take a look at the process and how it works:
Understanding VA Appraisers
When a Veteran is buying a home, the appraiser that will inspect the home is NOT a employee of the VA, they are an independent appraiser (just like any other appraiser).
The appraisal is ordered through the VA who will randomly assign an appraiser who has access to the same exact information that any other appraiser would have, such as recently sold homes, recently listed properties, and any other pertinent market data.
Now it’s important to understand that every appraiser is different and all have different opinions. Some may be more conservative and others may find the value of your new home to be totally acceptable with little or no scrutiny. Now, if you find yourself in a predicament where the appraiser may not find your home to appraise for what you are purchasing it for it’s important to understand… YOU HAVE OPTIONS!
When the Appraiser is Having Difficulties
If an appraiser is having difficulty determining the value of your home the first thing that happens is that you will receive a notice called a Tidewater notice. This notice tells all parties involved on the transaction that you have 48 hours to provide additional comparable property information that supports the purchase price of your home.
Once the additional comps are submitted to the appraiser he will then formulate his final opinion of value and issue the appraisal. The Tidewater Notice may or may not rectify value, but if it does, great! If not, you still have more options.
Before we get into the other options, Veterans, Realtors, and Lenders must understand that this process is unique to VA. If you are purchasing a home with a Conventional or FHA Home Loan you do not have this option, which actually makes VA Home Loans even more competitive than any other type of Home Loan.
You Have Options
Now, if your appraiser won’t budge, and you still feel that the home should be appraising for more, you are able to request what is referred to as a ROV (Reconsideration of Value) which is where the VA will get involved. Once this happens the VA will review all information and render a final decision thus giving the Veteran yet another opportunity to satisfy the value discrepancy.
It’s worth mentioning again that the VA Home Loan Appraisal process is no more difficult than any other appraisal type for mortgage financing. In fact, it could be argued that the VA Appraisal process is actually advantageous because of the multiple streams of review that the Veteran is afforded with his/her appraisal review.
So, Veterans, if you are in the market to buy a home and you have heard that VA is more difficult because of the appraisal process and are being advised to go with other types of loans instead of using your VA benefits that you have earned, don’t believe it!
If you have questions about the VA process and you would like to speak with a Mortgage Banker that specializes in VA Home Loans, then call me today at 602-908-5849.
Thank you and may God Bless you for Your Service to our Great Country.