Many who have served our country are realizing the benefits of a VA home loan. This type of loan was specially created to help veterans get the home they deserve. The current state of housing requirements can make it tough for people to receive the loan they need. Veteran loans allow for up to 100% financing without the need for mortgage insurance. In many cases, veterans are unable to meet these requirements because they haven’t had the same opportunities as civilians. One necessary part of being able to have the home of your dreams is a VA appraisal. Many veterans fear the appraisal process but you’ll find it’s nothing to worry about. Here are five common misconceptions about the VA appraisal process.
- It’s Tough to Qualify for an Appraisal
In order to receive an appraisal, you’ll have to meet the VA loan requirements. You’ll need to have served either 181 days during peacetime or 90 days during war time. If you’ve been enlisted in either the Reserves or National Guard, you’re likely to meet loan requirements. A spouse of someone who was killed during combat can also qualify for this program. If you are able to meet any of the previously mentioned requirements, you can receive a VA appraisal for a home that interests you.
- Having an Appraisal is Optional
Statistics show that VA mortgage rates are nearly 50 points lower than traditional mortgage loans. Being able to finance a home with a lower mortgage rate can greatly increase the number of qualifying homes. You’ll need to know that the VA appraisal is mandatory. Any home that is bought with the help of a VA loan has to be inspected. This inspection will be done by an appraiser that is certified by the VA.
- An Appraisal is a Long Process
It’s understandable to worry that an appraisal will take a long time. The last thing you want to do is wait to live in the home of your dreams. Fortunately, it only takes an average of 10 days for a VA appraisal to be fully completed. There are certain exceptions that may require the appraisal to take a longer amount of time. For instance, an inspector may need to visit a property more than once if the property needs repairs.
- Having a Home Appraised Ensures It’s Perfect
The main purpose of a VA appraisal is to check that a home is safe and sound. An inspector is sent by the VA to your potential homes, working from a specified checklist. Having a home inspected is not a guarantee that issues won’t come up in the future. It’s nearly impossible for any appraiser to fully ensure a property is in perfect shape. However, you’ll find that the VA appraisal will ensure that your new home is safe to live in.
- Receiving an Appraisal Guarantees a Home is Yours
It’s important to remember that issues can arise during an appraisal. If you’ve chosen the right property, you shouldn’t have to deal with many forks in the road. If a home does not meet the criteria, a buyer may need to discuss these matters with the seller. A seller may work with you to pay for any repairs that are needed. Another situation can occur where the appraised value of a home is less than the loan amount. The seller may lower the selling price of the home to match up more closely with the loan amount. It’s important not to get too invested in a property until you know it passes an appraisal.
In closing, there are several common misconceptions concerning a VA appraisal. If you meet the basic VA home loan requirements, you qualify for a home appraisal. Having a VA appraisal for any home you find is mandatory. Many VA appraisals are completed within 10 days or less. An appraisal does not act as a guarantee that your home is completely perfect. However, you can rest assured that any home that meets appraisal requirements is safe to live in. Be prepared that a home you find might not meet minimum VA home loan requirements. The VA home loan has helped many men and women who have served our country find the home they need.