If you're a veteran looking to purchase a home using a VA loan in Idaho, it's important to understand the VA Tidewater appraisal process. This unique appraisal process is designed to protect both the veteran borrower and the lender, ensuring that the home being purchased is valued correctly. In this blog post, we will provide a step-by-step guide to help you understand the VA Tidewater appraisal process and how it can impact your homebuying journey.

Step 1: Initiation of the VA Tidewater Appraisal Process

The VA Tidewater appraisal process is triggered when the appraiser determines that the initially appraised value of the home is lower than the agreed-upon purchase price. In this case, the appraiser is required to notify the lender immediately, and the VA Tidewater appraisal process begins.

Step 2: Request for Tidewater Appraisal

Once the appraiser has determined that the appraised value is lower than the purchase price, the lender is required to request a additional information from the Real Estate Agents. This data must be formatted and receive with in 48 hours of the Tidewater request.

Step 3: Tidewater Appraisal Process

During the Tidewater appraisal process, the appraiser will review the initial appraisal report and the additional data from the Realtors.. They will consider various factors such as comparable sales in the area, condition of the property, and any unique features that may impact the value.

Step 4: Results of the Tidewater Appraisal

Once the Tidewater appraisal is complete, the appraiser will provide the results to the lender. If the new appraised value is equal to or higher than the purchase price, the process ends, and the loan can proceed as planned.

Step 5: Lower Appraised Value and the Options

If the Tidewater appraisal results in a lower appraised value than the purchase price, the borrower, Realtors and the lender have a few options to consider:

1. Re-negotiate the Purchase Price: The borrower and the seller can renegotiate the purchase price based on the lower appraised value. This may involve the seller lowering the price or the borrower bringing additional funds to cover the difference.
2. Contest the Appraisal: If the borrower and the lender believe that the appraiser's valuation is incorrect, they can contest the appraisal by providing additional evidence to support a higher value, and send that data to the VA Regional Loan Center and the head appraiser.
3. Walk Away from the Purchase: If the borrower and the lender are unable to reach an agreement on the purchase price, the borrower has the option to walk away from the purchase without penalty, as long as the contract includes a VA appraisal contingency.

Step 6: Closing the Loan

If the borrower and the lender are able to reach an agreement on the purchase price, the loan can proceed to closing. The borrower will sign the necessary paperwork, and the loan will be funded, allowing the borrower to move forward with their home purchase.

Conclusion

The VA Tidewater appraisal process is an important step in the VA loan process that ensures the fair valuation of a home being purchased by a veteran borrower. Understanding the steps involved in the Tidewater appraisal process and the options available in case of a lower appraised value can help veterans navigate this process more effectively. If you're a veteran using a VA loan to purchase a home, make sure to work closely with your lender and real estate agent to understand the VA Tidewater appraisal process and its implications for your homebuying journey.