VA Loan Process Explained: Myths, Appraisals, and What Buyers and Sellers Should Know

The VA home loan is one of the most powerful benefits available to eligible service members, veterans, and some surviving spouses—but there are still many misunderstandings about how it works.

The VA loan process is actually very similar to other mortgage loans. Buyers work with a lender, obtain a Certificate of Eligibility (COE), get pre-approved, find a home, and then move through appraisal, underwriting, and closing. One common myth is that VA loans take much longer to close. In reality, many VA loans close in the same timeframe as conventional or FHA loans when the lender and agent are experienced with the process.

Another myth is that sellers must pay all of the buyer’s costs. While the VA limits certain fees that veterans cannot pay, sellers are not required to cover everything and many of the costs can be negotiated just like any other transaction.

A question that often comes up is what happens if the appraisal comes in below the contract price. The VA has a process called the Tidewater Initiative that gives the buyer and agents a chance to provide additional comparable sales before the value is finalized. If the value still comes in low, the buyer and seller can renegotiate the price, the buyer can pay the difference, or the contract can be canceled depending on the terms.

VA loans continue to be a strong option for buyers because they often allow for no down payment and competitive interest rates. If you’re thinking about buying or selling a home and want to better understand how VA financing works in today’s market, let’s connect. Let’s caffeinate and conversate ☕.