What Does a VA Mortgage Appraiser Do?

This home could have a VA mortgage on it.

A VA, or Veteran's Affairs, mortgage appraiser determines the value of a property for the VA in the event that a veteran borrower wants to purchase or refinance the home and get a VA mortgage.

Significance

An appraisal is needed on a home to determine its value in relation to the sales price. Additionally, it tells the lender the condition and location of the property as well.

Function

The VA appraiser's appraisal is considered to be the official value of the property, regardless of the sales price associated with the loan.

Types

Any home loan requires an appraisal, however, a VA mortgage requires additional documentation on the part of the appraiser than a conventional mortgage does.

Considerations

If an appraisal comes back on a potential VA mortgage purchase and the value of the home is lower than the sales price, the terms of the sale must be renegotiated. A borrower cannot borrow more than the appraised value.

Misconceptions

The appraised value and the tax value of a home are not the same thing. They could be very different amounts, depending upon the situation.

References

• FederalReserve.gov: A Consumer's Guide to Mortgage Refinancing
• HomeLoans.VA.gov: Loan Guaranty Service