VA Loan Appraisal Process: What to Expect and How to Prepare

by Daniel Salazar

VA Loan Appraisal Process: What to Expect and How to Prepare

When buying a home using a VA loan, the appraisal process is one of the most important steps. It ensures that the property you’re interested in meets the VA’s minimum property requirements (MPRs) and that it’s worth the amount you're planning to borrow. Understanding how the VA loan appraisal process works—and how to prepare for it—can help ensure a smooth transaction and avoid delays.

In this blog, we’ll take you through what to expect during the VA loan appraisal process, what it means for you as a homebuyer, and how to prepare for it.

1. What Is a VA Loan Appraisal?

A VA loan appraisal is an assessment conducted by a licensed appraiser who evaluates the value and condition of the property you are looking to purchase. The appraisal’s primary goal is to ensure that the home is worth the purchase price and meets the VA’s Minimum Property Requirements (MPRs).

The appraiser will look at various factors, including:

Comparable property values in the area (to assess market value)
The condition of the home (to ensure it meets basic safety and livability standards)
Structural integrity, including the roof, foundation, plumbing, and electrical systems

It’s important to note that the appraisal is not the same as a home inspection. While a home inspection focuses on identifying issues with the property, the appraisal is solely concerned with assessing the home’s value and meeting the VA’s standards.

2. What to Expect During the VA Loan Appraisal

Once your VA loan application has been processed and you’re under contract for a property, the VA-approved appraiser will visit the home. Here’s what to expect during the process:

Scheduling the appraisal: Your lender will order the VA appraisal after you’ve signed the purchase agreement. The appraiser will typically schedule the visit directly with the seller or listing agent, and the homebuyer is not required to be present.
The appraisal inspection: The appraiser will take note of the home’s condition, both inside and out, including the roof, foundation, plumbing, electrical, and heating systems. They will also assess the neighborhood and ensure that the property meets the VA’s MPRs, such as safe and sanitary living conditions.
Appraisal report: After the inspection, the appraiser will submit their findings in a report to your lender. The report includes the appraised value of the property, an evaluation of its condition, and a determination of whether it meets the VA’s MPRs.

3. What Happens If the Appraisal Comes in Below the Purchase Price?

One of the most common questions homebuyers have about the VA loan appraisal is what happens if the appraisal value comes in lower than the agreed-upon purchase price. If this happens, you have several options:

Renegotiate the price: You can work with the seller to lower the sale price to match the appraised value.
Pay the difference: If you’re in a strong financial position, you may choose to cover the difference between the appraised value and the purchase price in cash. However, this is not ideal for many buyers.
Appeal the appraisal: If you believe that the appraiser made an error or missed key aspects of the property’s value, you can request a reconsideration of value (ROV) from your lender. This may involve providing evidence of other comparable properties to show that the appraiser’s valuation was too low.

Keep in mind that the VA will only allow financing for the appraised value of the home. If the seller refuses to lower the price and you can’t cover the difference, you may have to walk away from the deal.

4. Preparing for the VA Loan Appraisal

While you, as the homebuyer, are not required to do much to prepare for the appraisal, there are a few things you can do to help ensure the process goes smoothly:

Ensure the home is accessible: Make sure the appraiser has easy access to all areas of the property, including the attic, basement, and any outbuildings.
Address any obvious repairs: If the home has visible issues (e.g., broken windows, safety hazards, or missing handrails), it’s wise to address these before the appraisal. The VA requires that the property meet a minimum standard of safety and habitability, so these issues could delay the process or cause the property to fail the appraisal.
Provide any necessary documents: If you have any information about recent repairs or improvements made to the property, share this with your real estate agent. They can pass it along to the appraiser, which could help them understand the value of the home.
Be prepared for the possibility of repairs: If the appraiser finds minor issues with the property, such as peeling paint or faulty plumbing, you may be required to fix these before the loan can be approved. Be ready to address these concerns to avoid delays in closing.

5. Understanding the VA’s Minimum Property Requirements (MPRs)

The VA has specific standards that properties must meet in order to be eligible for VA financing. These are called Minimum Property Requirements (MPRs). MPRs ensure that the property is safe, sanitary, and structurally sound. Some common MPRs include:

Safe access to the home (e.g., no steep steps or hazardous walkways)
No significant safety hazards (e.g., mold, lead-based paint, or other health concerns)
Adequate living space (e.g., sufficient heating, plumbing, and electricity)
Functional appliances and systems (e.g., working plumbing, electrical systems, and HVAC)

If a property fails to meet MPRs, the seller may be required to make repairs or adjustments before the loan can proceed.

6. How Long Does the VA Loan Appraisal Process Take?

The VA appraisal process can take anywhere from 7 to 10 days, though it may vary depending on the location, the appraiser’s schedule, and the complexity of the property. Once the appraiser completes their report, it will typically be sent to your lender, who will review it before moving forward with the loan approval process.

If any issues arise during the appraisal, it could take longer to resolve.

In Summary

The VA loan appraisal is an essential step in the home-buying process that ensures the property meets the VA’s standards and is worth the price you’re paying. While the process itself is relatively straightforward, understanding what to expect and how to prepare can help you avoid delays and navigate any challenges that come up.

By addressing any potential issues before the appraisal, ensuring the property meets the VA’s Minimum Property Requirements, and working with a knowledgeable real estate agent, you can confidently move forward with your home purchase.

Contact Realtor Daniel Salazar

Ready to buy your next home with a VA loan? I specialize in working with military families and can guide you through the VA loan appraisal process and help you find the perfect home for you and your family.

Realtor: Daniel Salazar
Company: REAL Broker LLC
Phone: 210-701-3880
Email: dansalre11@gmail.com

Contact me today to start your home-buying journey with confidence!