Part of the process of buying a home in Indianapolis with a VA mortgage is getting an appraisal. The reason that the VA requires an appraisal is to ensure that your new home will be worth what you are paying for it.

Quick tips for VA loan appraisal process

What do you need to know about the VA loan appraisal process? Let’s go over some useful information.

1. The home must meet Minimum Property Requirements (MPRs). With a VA mortgage, you can move into a home with zero down right away. To make sure that you can live in the home immediately, the VA requires that the appraiser verify whether the home meets Minimum Property Requirements (MPRs). To meet these requirements, a property must have all necessary functioning utilities, including electricity, plumbing and HVAC. The appraiser will also check the overall condition of the structure and verify that it is free of leaks or pests. If there are any hazardous materials or defects, repairs or replacement may be necessary for a property to pass the VA appraisal. Who will pay for those repairs? If the seller is sufficiently motivated, often they will cover the costs. In some situations, you might decide to contribute toward repair costs. After the appraisal is finished, the report will need to include a properly filled-out MPR form. It will be good for six months. Strongly consider getting a home inspection too. A VA appraisal tells you a lot but doesn’t cover everything a home inspection does.
2. There is a modest fee. The appraisal fee during the VA mortgage process is as follows for Indiana:
   
   • Single family: $525
   • Individual condo: $525
   • Manufactured home: $525
   • 2-4 unit multi-family: $675
     
     This is well in line with the typical fees throughout the region. While it is not a large expense in the context of a home purchase, you do need to account for it in advance. Closing costs for VA mortgages are capped, and sometimes the seller covers them. The seller might also be willing to renegotiate the price of sale to help you recoup your VA appraisal cost too. If you were disabled during duty, you may also not have to pay a funding fee. So, the special savings with VA mortgages can help to offset the appraisal cost. That is an advantage over a conventional loan. In terms of timing, the VA does set guidelines for turnaround on appraisals, but keep in mind that they are only that—guidelines. It is common for the VA loan appraisal process to take longer than the specified guideline. So, you should plan for that possibility. Give yourself some extra time for this step. That way, you will not be rushed if there is a delay.
3. You can ask the VA to reassess a property’s value. Hopefully the appraiser will determine the property’s value is at least what the seller is asking. But what if the appraiser deems the property to be overvalued by the seller? If you think the appraiser made a mistake, you can submit a Reconsideration of Value appeal to the VA. If it comes out in your favor, you can move forward. Otherwise, there are a few other possible workarounds, such as the Tidewater Initiative. Through the Tidewater Initiative, your appraiser lets the lender know if the property might be overvalued with respect to other home sales. This gives the lender an opportunity to find examples of relevant home sales (comparable home sales, or “comps”) to share with the appraiser. Often, this process leads to a re-appraisal of value in your favour.

Apply Now for a VA Mortgage

Have questions about VA loan appraisals, or want to apply now for a VA mortgage? Grandview Lending can help.

To schedule your consultation, please call Grandview today at (317) 255-0062. We look forward to helping you easily and affordably move into a beautiful home in Indianapolis.