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What Is The
Process For
Obtaining A VA Loan? |
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The application process for VA
financing is no different from any other type of loan. In
fact, the VA application form is the same as that used for HUD/FHA and conventional
loans. The mortgage lender verifies the applicant's income and assets, and obtains a
credit report to see that other obligations are being paid on time. If all is well and the
appraised value of the property is enough to cover the loan needed, the lender, in most
instances, can then close the loan under VA's automatic procedure. Only about 10%
of VA loan applications have to be submitted to a VA office for approval before closing. |
| VA Appraisal - Certificate
of Reasonable Value |
The CRV (certificate of reasonable
value) is based on an appraiser's estimate of the
value of the property to be purchased. Because the loan amount may not exceed the
CRV, the first step ingetting a VA loan is usually to request an appraisal. Anyone (buyer,
seller, real estate personnel or lender) can request a VA appraisal by completing VA
Form 26-1805, Request for Determination of Reasonable Value. After completing the
form, it can either be mailed to the Loan Guaranty Division at the nearest VA office for
processing or an appraisal can be requested by telephoning the Loan Guaranty Division
for assignment of an appraiser. The local VA office may be contacted for information
concerning its assignment procedures. The appraiser will send a bill for his or her
services
to the requester according to a fee schedule approved by VA. To simplify things, VA and
HUD/FHA (Department of Housing and Urban Development/Federal Housing
Administration) use the same appraisal forms. Also, if the property was recently appraised
under the HUD procedure, under certain limited circumstances, the HUD conditional
commitment can be converted to a VA CRV. Your VA office can explain how this is done. |
It is important to recognize that
while the VA appraisal estimates the value of the property,
it is not an inspection and does not guarantee that the house is free of defects.
Homebuyers should be encouraged to carefully inspect the property themselves, or to
hire a reputable inspection firm to help in this area. VA guarantees the loan, not the
condition of the property. |
• Nellis Air Force Base • |
"Home Of The Fighter Pilot!" |
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©Copyright Bart Austin - REALTOR®. All rights reserved. |
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