An Explanation of the VA Appraisal Process

VA appraisals follow a simple procedure during the mortgage loan process. The loan officer from your lending institution will request the VA appraisal. The loan officer will enter your appraisal application using the online process of the Department of Veterans Affairs. Next, the VA officer will select an appraiser to handle your property. VA appraisal charges are controlled by each state and the fees will vary from state to state. Appraisal fees typically range anywhere between $300 and $400. Many lending institutions have policies in place that require this to be paid prior to the closing.

Your VA appraisal should be initiated at the beginning of your mortgage process to allow the appraiser enough time to complete your appraisal. VA Loan appraisers are assigned arbitrarily to your mortgage loan to avoid any conflict of interests on your property. As a result, you cannot ask for a specific appraiser. All VA appraisers go through a rigorous training process to ensure that you receive a fair and accurate appraisal. All major structural issues are required to be fixed prior to the closing date. There are several different problems that will be required to be repaired prior to the approval of the VA loan. The majority of these repairs are health and safety related problems such as broken front steps, missing railings or unstable decks. All homes are required to be considered livable to be able to obtain a loan.

During your VA appraisal process, all repairs that were discovered during the appraisal process will need to be fixed prior to the closing date of the loan. There are a few cases where the lending institution will grant the buyer an escrow containing money for the repairs so that they buyer can get them fixed at a later date due to weather or other adverse conditions.

It is not uncommon for the appraisal to be determined as lower than the selling price of the property. If this occurs, there are several steps a seller can take. You can request that the VA do another appraisal on the property. During this process you can ask that the house value be higher based on comparables in the neighborhood that were not considered during the original appraisal. An alternative would be to agree to a higher rate on the mortgage and ask the lending institution to refund the additional cash to make up for the difference. If you do not have the money on hand for the difference, the seller has to pay for the property at the appraised value. A VA loan can only be approved for the lowest price, whether it is the selling price or the price on the VA appraisal.

Ballpark time frame for appraisal process?
written by Lauren, August 23, 2011

I found out from our mortgage consultant that the appraisal has been ordered and an appraiser has been assigned. All I've heard is that the VA process is "long", but never really had an idea of how "long"? I know it can vary if there are things that need to be fixed after the first appraisal, but what time frame are we looking at once an appraiser has been assigned before we get the report? Once the report is submitted till we know if we need have things fixed or we could get an escrow to have fixed at a later time? And obtain the loan? 2-4 weeks, 6-9 weeks????

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written by Marc, July 23, 2011

Are a rock and mortar foundation or a dirt road automatic dis-qualifiers for VA?

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written by judy villecco, May 11, 2010

I just had an appraisal in Williamsburg and the builder asked the lender to consider additional comps on my loan to raise the appraisal not considering short sales. Is this ethical? I thought I was paying for the appraisal?

Appraisal
written by Linda Hurst, December 31, 2009

My question is, when the apparisal is completed and the house is appraised for less than the selling price, do we have to accept the appraisal and go back to the seller to ask them to lower the price or can we stick with the selling price and go ahead with the loan process?

Response:

You would need to accept the appraisal and ask the seller to reduce their price, the VA will only approve loans for the appraisal amount.

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written by Thomas H., December 10, 2009

I love old Houses, especially the Victorian Styles. However, most of them are very old (like 1890's). Can an old house pass the inspection if it has a solid foundation and structure, newer plumbing and electrical. Basically remodeled in the inside, but has some paint chipping off on the outside? Is the outside paint an issue?

Response:
It will really depend on the appraiser, unless the paint is coming off and the wood is rotting. If the appraiser makes note of it, the lender may want it fixed before closing.

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written by Richard Lamkin, November 19, 2009

Does the VA require gutters on the house, or is that just FHA?

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written by HF, November 15, 2009

I've contracted a forclosed VA home with Va Vendee funding available. The bank states "AS IS". Problem is that the laundry room was relocated and the slab in the old laudry room is broken. There is no apparent reason for the break, no plumbing in the area of the break. Will the VA appraiser write that the slab has to be repaired prior to closing?

Need quick answer. Buyer will fix but would rather bank take care of it. Thanks.

Va previous appraisal
written by Michael Mills, October 07, 2009

We had our offer accepted one our 1st place but there was an appraisal done previously. The seller (bank owned) is now saying they won't take our offer because the VA appraisal was lower. Is there a way to get it re- appraised or is there a time frame till it expires? The comps have gone up in that area in the last month.

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written by Bob Gaudioso, May 25, 2009

Ia the heating and air conditioning part of the appraisal and woulld the inspector check this during his inspection

va appraisal fee
written by max douglas, May 19, 2009

i recently read regional loan center release no. 05-05. it's dated may 23 2005. it states that the requester who is often times the one ordering the appaisal for the servicer, is not released of responsibility of paying the appaisal fee. does this mean that the lender or requester should require the vetran to pay the appraisal fee at all?

TIME FRAME ON VA APPRAISALS
written by K. HADLEY, May 06, 2009

HOW LONG DOES A VA APPRAISALS USUALLY TAKE TO BE SCHEDULED AFTER THE LOAN OFFICER ORDERS IT? AND HOW DO YOU VERIFY THAT THE APPRAISAL HAS BEEN ORDERED BY THE LOAN OFFICER?

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written by Johnp, May 01, 2009

Yes, if you switch lenders the new lender must use the old VA appraisal and the old lender must transfer it.

Mrs Lenora T
written by Lenora T., April 23, 2009

I have recently applied for a VA loan through one mortgage lender who ordered the VA appraisal. I then switched lenders. The appraisal has already been completed and approved but the previous lender will not transfer the appraisal over. I was told that the appraisal follows the appraised property and that legally the previous lender has to transfer the appraisal. Is this correct?

RE: VA Appraisers
written by John P, April 17, 2009

VA appraisers are supposed to note if there are signs of foundation problems, since I am not an appraiser I cannot say how it should be worded but from what I have seen in the past this is standard procedure.

As a real estate agent, maybe you should have advised your client that the appraiser found a potential issue and wanted the seller to provide a structural analysis to protect them and the VA.

In the same way that are looking out for your clients best interest, the VA is also looking out for them as well.

va appraisers
written by VY, April 15, 2009

I am a real estate agent and I have a problem with one local appraiser...he words his appraisals as if he were a professional engineer. One of his last appraisal comments for repairs were: Structural inspection by a structural engineer due to signs of settlement on interior and exterior. Repair to be supervised by an engineer...It was found that no structural problems existed>>>>comment please on how the appraisers wording should go on this report. The buyers stopped right there when they read the appraisal and did not proceed to even have it inspected thanks to this wording.

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written by John P, March 22, 2009

You don't say whether this is for a home that you are purchasing or if it is a refinance of an existing loan or what state you are in.

If the road to your house requires you to go through land owned by others then you will probably need a road maintenance agreement.

As far as the driveway, is it common in your area to have a driveway?

Appraisal repairs
written by Darrell Duff, March 20, 2009

I just had a VA appraisal done and the property I am buying is in a rural area. The appraiser say I need a driveway which the house never had to begin with. would this actually be an issue that needed taken care of? They also asked for a road maintenance agreement for a dirt road. Is that an issue that needs addressed?

Thank you for your assistance

Darrell Duff