A problematic appraisal is a typical fear among buyers and agents.
Whether in the form of a low appraisal value or a litany of mandated repairs, VA appraisal challenges can be alarming. VA appraisal problems can slow down the process and even force buyers to restart the house hunt.
Fortunately, buyers and their agents have options for handling appraisal challenges. Read on for solutions to the two most common VA appraisal problems: mandated repairs and a low appraisal value.
The VA appraiser will hold all properties to a list of “Minimum Property Requirements” (MPRs.) MPRs ensure that all homes purchased with VA loans are safe, structurally sound and hazard-free.
But not all homes meet those criteria. Appraisers will carefully note any deficiencies and list all repairs necessary to bring a home up to VA standards. Those repairs must be completed before a VA loan can be finalized. What’s a buyer to do once repairs have been mandated?
Today’s rapidly changing market can bring equal volatility to appraisal values. A VA loan can’t be issued for more than the appraisal value, so a low appraisal can send buyers scrambling. Consider these three strategies for handling a low appraisal value:
What’s the best way to prepare for the VA appraisal? Pick a house in good condition and select the right professionals to assist you, including a VA-savvy agent and an experienced VA lender. Knowledgeable experts can steer you to sound homes and carefully guide you through the VA loan process.
A VA loan is a mortgage option issued by private lenders and partially backed, or guaranteed, by the Department of Veterans Affairs. Here we look at how VA loans work and what most borrowers don’t know about the program.
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