What is the purpose of a VA loan appraisal?


Quick Answer

The purpose of a VA appraisal is to ensure that the property meets the VA’s Minimum Property Requirements, or MPR. The VA appraisal helps buyers determine the property’s monetary value.

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Full Answer

The VA appraisal helps determine the suitability of a property for veterans. It ensures that the property in question is safe and ready for move-in. Rotten flooring and caved-in ceilings are example of unacceptable conditions that have to be fixed before closing the deal.

The VA appraisal establishes the fair market value of the property veterans want to buy. The appraiser uses data from recent sales of comparable homes and market conditions to estimate the fair market value of each property. The VA has to approve and randomly assign the appraiser to make sure the appraised value is objective and fair.

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