One of the best programs in the mortgage industry today is the VA home loan. It comes with benefits that eligible Veterans can take advantage of.
Other than it being a no-cost mortgage, eligible borrowers can score low-interest rates with the loan.
Just like any other mortgage, VA home loans come with guidelines and requirements that interest borrowers need to meet.
Among the requirements that go with this program is a VA loan appraisal. To understand its purposes, here are the things you need to know.
VA Loan Appraisal
The VA makes sure that their Veteran mortgage borrowers get the best property that they can call their home.
One way of securing this is by checking if the borrower’s prospective property is eligible under the VA.
The VA doesn’t just approve mortgages for every home that an eligible Veteran wishes to purchase especially when the property can compromise the owner’s safety.
This is where the VA loan appraisal comes in. While this process can get difficult on the borrowers’ part, its purpose is for their own good.
The entire VA loan appraisal process is one way to ensure that homebuyers under the VA get the home that they deserve.
Meeting VA’s Minimum Property Requirements
Other than evaluating a property’s worth, the VA appraisal process includes addressing the home’s possible issues that might affect it’s the value and safety.
Keep in mind that the VA aims to make sure that Veterans will purchase homes that are safe, “move-in ready”, and will require little to no repairs.
Appraisers make sure that the residence they’re checking meets VA’s Minimum Property Requirements (MPRs).
It mainly addresses concerns about the home’s structure, electrical systems, and the like. The VA’s MPRs has a detailed list that helps appraisers determine a property’s eligibility.
What if the property doesn’t meet the standard requirements?
In the event that the home does not meet the MPR standards, there are a few options that the Veteran homebuyer can do.
Buyers can agree to do repairs to the property in order for it to meet the MPR standards.
Either you cover the repair cost yourself or you can negotiate with the seller to pay for the repairs themselves.
If the property’s value after the VA loan appraisal process turns out to be under your target loan amount, the buyer can negotiate with the seller to settle with a lower price.
Other than that, the buyer can choose to pay the shortfall in cash or make a petition for a Reconsideration of Value.
Ultimately, the buyer can also decide to walk away from the sale and look for a better property that will meet the VA’s standards.
Aim to purchase the best home for you
If ever the VA loan appraisal process gets very complicated and overwhelming for you, a little patience will definitely go a long way.
After all, the purpose of these standards is to guarantee that VA homebuyers will have a home free of problems in the future.
Therefore, you should know that the VA’s processes only aims to help Veterans avoid these obstacles and for them to have a peaceful way of living.Contact a VA lender today.