Health & Fitness
St. Louis Real Estate Tip: VA Loan Process and the Appraisal
Choosing the right agent for your VA Loan will save time and frustration due to strict loan process.
If you are a first-time home buyer, or if this is your first VA loan, the idea of getting an appraisal is an important step in the buying process, which protects the buyer from paying more than fair-market value for the new purchase.
The VA loan process begins after your VA home loan expert schedules a VA-approved appraiser for the property. The Department of Veterans Affairs handles the scheduling and randomly assigns an appraiser. As a borrower, selecting an appraiser is not an option and with a VA loan, there are limited appraisers providing this service.
It is the appraiser’s responsibility to ensure the home meets minimum property requirements as set by the VA. Appraisers must also guarantee the home is safe and habitable. Typically, the appraisal is requested early into the VA loan process to ensure there will be enough time to address any issues resulting from the appraisal.
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Appraisers must inspect the potential property inside and out. They are also required to select and view the exterior of comparable homes and perform a comparative analysis. Typically, appraisers look for things like structural issues, or any other problems impacting the purchase of the home. The VA prefers move-in ready homes.
Here are some possible issues that may arise on appraisal reports. Inefficient or non-acceptable source of heat is a major issue. A heating system must maintain a minimum temperature of 50 degrees in the plumbing areas of the home. Also, there must be adequate and code-approved electrical systems with all the proper fixtures. Roofs can’t have leaky roof – or a roof that has problems. Windows will also be scrutinized for broken or damaged frames and seals can be an issue on an appraisal report.
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Appraisers must include a location map, building perimeter sketches and photographs of either the sale property or the lot where the new home’s construction is going to take place. They also provide an itemized list of repairs required to be completed in order for the VA loan to be approved. This list also includes any corrections needed in order to make the property conform to regulations set by the Department of Veterans Affairs. Then, they must personally make the final-value estimate and sign their name to the appraisal report. They cannot delegate any of these tasks.
To help streamline the process, select a Realtor who is well versed in VA property guidelines. Having an agent who continues to show you properties that are ultimately ineligible for a VA loan is a waste of your time. It’s also very important to work with an experienced VA lender. Lenders who have dedicated VA loan experience know the ins and outs of every VA regulation and can help guide you through the home buying process with ease. If you follow these two suggestions, while educating yourself on the appraisal process – you’ll be living in your dream home very soon!
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Beverly Taki is a Missouri-licensed real estate broker who has successfully represented clients for 25 years. She is a broker salesperson at Keller Williams Realty St Louis. 10936 Manchester Road, St. Louis, MO 63122. Beverly has earned a certificate in dispute resolution from Pepperdine University, specializing in negotiation and mediation. Taki can be reached at beverlytaki@kw.com or 314.677.6366. Her website is beverlytakistlouis.com.