Profile picture for twade889

VA Home Appraisal

I am a first time home buyer, using a VA Home Loan through my bank. My bank says they will lend up to 100% of the Appraisal price. My questions:

Is this normal that banks go off the Appraisal price to figure out how much to loan?

If the asking price is above the appraisal price I obviously get stuck with the difference and the closing costs, how can I find out the appraisal of a home before getting into any paperwork with the seller? We are hoping to find a home that is appraised about 10k above asking that way we can roll closing into final cost and hopefully have little or nothing out of pocket.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 01 2013 - Akron
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (3)

Profile picture for twade889
Thank you both so much for your advice. I will definetly email you if I have any further questions, which I'm sure I will because this is a trying experience. I'm starting to think the desert was an easier expeirience than this!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 02 2013
First, thank you for your service!

Concerning appraised value:  It's absolutely normal and you'll find everyone works the same in this regard.  The rules for us lenders is that we have to base the "loan to value" off of the lessor of the purchase price or the appraised value. Like you acknowledged: if the appraised value is less than your offer (or the seller's asking price) - then you'd have to pay the difference and closing costs (if the seller hadn't agreed). 

You won't be able to find the exact appraised value except for when the appraisal is finished. It's all a matter of the appraiser's opinion especially the adjustments used to derive the value and their opinion on the condition of the home. However, you can ask your Realtor's opinion to see if they can help direct you to areas where values are stable. 

If you're concerned about closing costs. The only other option is to request help with OHFA funds too. This way they can assist with closing costs. I would suggest that you be prepared to pay for your appraisal and for any inspections you'd want to have done (home inspection) and those required ie well and septic tests and inspections (if applicable) and a pest inspection (seller must pay and obtain if you're requesting a VA loan). 

If you have add'l questions, I'd be happy to help. Best wishes otherwise, Kimberly Lawson, Licensed Mortgage Loan Originator - Ohio only. Contact and licensing information can be found on my profile.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 02 2013
Lenders/banks only go off of appraised value for lending purposes. The VA and FHA buyers I have represented have been able to adjust their interest rate to cover closing costs and Navy Federal Credit Union has an addendum that if the home does not appraise at the agreed upon price then the sale price will be adjusted/negotiated to the appraised value if lower than the agreed price.
 
Your Realtor should be able to provide a market analysis for a general value of the home, but the appraisal is the only item the bank will use to determine loan amount. Another strategy if you are asking for the seller to pay closing costs is to offer above the list price if the neighborhood values can support it. This is what we have had to do in our market to be more competitive against cash/conventional buyers.

VA loans are a great financing option and you have earned it by serving our country. Try to find a Realtor that is familiar with VA loans and can educate the seller and seller's agent about the strength of VA financing. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 01 2013
 
Related Questions
VA Home Appraisal
Profile picture for twade889
Latest answer by twade889
December 02 2013 | 3 answers
Caivers is killing us
Profile picture for wetdawgs
Latest answer by wetdawgs
October 13 2013 | 4 answers
Can I save much money on closing costs by paying cash for a house $ (located in Ohio)
Profile picture for rewlrw
Latest answer by rewlrw
June 20 2013 | 5 answers
Is a buyer allowed to talk to the appraise?
Profile picture for sunnyview
Latest answer by sunnyview
December 02 2012 | 5 answers
What recourse do I have if seller continues to remove items after closing from the home I am buying?
Profile picture for Gershon Alexander
Latest answer by Gershon Alexander
September 29 2012 | 13 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 73 Devonshire Dr, Akron, OH Home For Sale
    73 Devonshire Dr, Akron, OH 44312

     For Sale: $34,900

    • Beds: 0
    • Sqft: 1439
    • Baths: 2.0
    • Lot: 4199
  2. 715 Magnolia Ave, Cuyahoga Falls, OH Home For Sale
    715 Magnolia Ave, Cuyahoga Falls, OH 44221

     For Sale: $129,000

    • Beds: 4
    • Sqft: 1192
    • Baths: 2.0
    • Lot: 7771
  3. 2366 Bellfield Ave, Akron, OH Home For Sale
    2366 Bellfield Ave, Akron, OH 44312

     For Sale: $109,900

    • Beds: 3
    • Sqft: 1292
    • Baths: 2.5
    • Lot: 8201