What do VA appraisers look for when refinancing? (2024)

What do VA appraisers look for when refinancing?

Here's a breakdown of key factors appraisers look for during a refinance appraisal: Exterior condition and materials: The exterior condition of the siding, roofing, windows and doors. Interior condition and upgrades: The condition of interior floors, walls, windows, doors and the quality of any upgrades or renovations.

What is checked during a refinance appraisal?

An appraiser visits your home for about 30 minutes to a few hours to measure its dimensions, examine amenities, and evaluate the overall condition both inside and out, taking photos of the exterior, the garage, and every interior room.

What are the red flags for VA loan appraisal?

Red flags include the presence of radon gas, asbestos or lead-based paint within the home, or properties located in a flood zone, near a sinkhole, or proximity to any type of environmental contamination.

What fails a VA appraisal?

Electrical and plumbing systems must be in good condition, roofs must be defect-free and basem*nts must be dry. VA appraisal guidelines can be strict and prevent some fixer-uppers from passing the appraisal.

What do they look at during a VA appraisal?

Appraisers must note any damage caused by termites, wood-destroying insects, pest infestation, dry rot or any other defects that cause structural issues with the home. The appraiser must look for issues that could make the home less stable and/or put the occupants in harm's way.

How clean does my house need to be for a refinance appraisal?

Here are a few steps you can take to prepare for your refinance appraisal: Clean up. Your appraiser will likely want to view your home's interior and exterior, so make sure to clean up both the yard and the inside. Even something as simple as dusting and cleaning up clutter can make your home look more appealing.

How do I avoid appraisal when refinancing?

Do VA appraisals usually come in low?

Fannie Mae once examined data in 2011-12 and found, “Appraised values come in below contract about 8% of the time.” Of course, market conditions were very different back then from today so you should take that figure with a pinch of salt.

Are VA loans strict on appraisals?

Loan appraisers use VA guidelines to determine the home's value and if the property meets the VA's basic property standards, called minimum property requirements (MPRs). As a result, VA loan appraisal requirements are often considered stricter than requirements for non-VA loans.

How long does a VA appraiser have to complete an appraisal?

Typically, a VA appraisal takes anywhere from one to two weeks to complete. Most areas can expect the appraisal process to take approximately 10 days. The VA does not mandate a strict timeline but offers a timeliness expectation based on the home's location and size.

Why do VA loans fall through?

A home will fail the VA appraisal if it does not meet VA Minimum Property Requirements (MPRs). To be eligible for VA financing, a property must meet MPRs. These requirements help make sure the home is not only safe, but move-in ready for the Veteran.

How often do VA loans fall through?

The reality: numbers. For all purchases, according to Ellie Mae, 74.3 percent of VA loans closed, compared to 74.1 percent of all mortgages.

Will VA approve a home with foundation issues?

Unlike standard loans, HUD and VA programs require that a property is structurally sound. Even if the lender agrees to finance a home with foundation issues, you may have to provide a bigger down payment and pay a higher interest rate. Repairs could be costly.

Can you rush a VA appraisal?

The VAdoes not allow any rush order requests. Correspondent clients should expect the appraisal to be completed within 15 business days of the original order date.

Do VA appraisers go in crawl space?

Appraisers will also check for any leaks or potential water leakage that could cause mold, including in the attic, basem*nt, or crawlspace. Mold can lead to wood rot, creating an unsafe structure, and pose health risks.

Do appraisers look in showers?

Bathrooms

Similar to kitchens, bathrooms are inspected for quality, condition and materials. An appraiser looks at whether it's a full or half bath, whether it has a decent shower, updated lighting, quality counters and looks for signs of mold.

Do appraisers look under sinks?

Yes, the appraiser will look under your sinks to ensure there isn't any water damage or problems hiding. No need to clear out any under-sink storage but do make sure it is clean and accessible. If there is no damage, this won't harm your home appraisal.

Does furniture affect appraisal?

The standard, professional answer is, of course: “No, it won't affect value. Appraisers are trained to look at the structure and layout of the house, and overlook the sinkful of dirty dishes. Don't worry.” The truth, however, is a little more complicated.

Can a refinance be denied after appraisal?

Can a refinance be denied after the appraisal? Yes, a lender may deny a refinance if the appraisal is lower than the amount you owe on the mortgage. An appraisal establishes a home's fair market value.

What happens if my home appraisal comes in low for refinance?

This can be a problem because lenders will only lend on the appraised value. If your appraised value is lower than the agreed upon sales price, you'll have to make up the difference in cash, or cancel the deal.

What if my appraisal comes in high for refinance?

Your home's value, as established by an appraisal, will affect the loan-to-value (LTV) ratio of your refinance loan. Here's what that means for you: → If the appraisal comes in higher than the purchase price, you're good to go — your home's value is increasing and that's always a good thing.

How do I prepare for a VA appraisal?

Does VA refinance require appraisal?

The VA requires a credit check and an appraisal on all Cash-Out refinance loans. These loans require the same underwriting process that's applied to VA purchase loans. Finding your home's value is very important when Cash-Out refinancing since the cash you receive is directly based on the amount of equity in the home.

What happens if the VA appraisal is higher than offer?

What happens if the appraisal comes in above the purchase price of the home? You're in a good situation if this happens. It simply means that you've agreed to pay the seller less than the home's market value. Your mortgage amount does not change because the selling price will not increase to meet the appraisal value.

How long does it take to close on a VA loan after the appraisal?

If so, you may be wondering how long it takes to close on a house with a VA loan. With most lenders, you can expect your VA loan to close anywhere between 40 and 50 days. However, when you work with an experienced VA loan lender like Griffin Funding, you can typically close on your VA loan in 30 days or less.