What is an Appraisal?

An appraisal on your home is the practice of developing an opinion of the value of real property, usually its market value.  Before any VA lender or bank will lend you money, they want to make sure the collateral; your home, is worth the amount of money you are going to pay for it.  One way in which a VA appraiser will determine your homes value is by searching for other homes in the area similar to yours and seeing what they have recently sold for.  

Not all the VA mortgages require an appraisal.  Both a VA purchased loan in the VA cash out refinance loan will require you to furnish the lender with an appraisal, however a VA streamline refinance will not require an appraisal of your home.

Get answers to your other VA loan questions here.