Many times, a seller or their agent may cringe when they receive a VA-Backed Offer. Immediate fears of an intense inspection and overly scrutinized appraisal process. A lot of people have experienced nightmares with a VA loan or know someone who had to deal with the excruciating pain of aa appraisal visit. What if I told you, there is no need to swallow to continue with the Blue Pill…Red Pill will set you free!
A VA Appraiser objective is to determine if the home is adequately priced and to verify the VA’s Minimum Property Requirements (MPR). According to Brad Stinson with Benchmark Mortgage, the MPR could be summed up as Safe, Sound, and Sanitary. Any home not meeting the 3-S’s must be resolved prior to closing. He goes on to say, “VA Appraisal is no different than an FHA Appraisal or any other government backed loan.” These requirements are the minimal standards. As Brad puts it – “VA doesn’t tell you what to do, they simply tell you what you cannot do!”
What is “Safe”? Homes without handrails for stairs, under sized electrical panel, improper egress, and poorly ventilating fireplace are some common concerns discovered during a routine appraisal visit. A good home inspector is usually ready to discover these items and quite possibly the seller could resolve the concerns prior to an appraisal visit.
Sound? Why do I need sound? Sound references the structure of the home, no broken windows, and roofs. Broken windows and roofs are the traditional culprits discovered by an appraiser. If an appraiser discover these issues, the items must be resolved and an appraiser will charge a reinspection fee.
OK, I know what Sanitary is describing! If the fecal is not flowing down hill; well Houston may have a problem. Also, good clean and consistent flow of water is a must. No loan, backed by the government – VA, FHA, MSHDA, USDA – will not move forward with a closing until these items are resolved.
A good realtor and loan officer will guide you through the process and ensure you are always two-steps a head for an on-time closing!
To learn more about me and my team, visit our website, www.lakeliferealestate.com