If you are currently considering buying a new home or refinancing an existing home loan through the VA program, it’s important to understand recent changes in Colorado VA appraisal fees. The Department of Veterans affairs recently notified loan providers throughout the state that they have approved an increase in Colorado VA appraisal fees. The increase in fees was approved in an effort to remain competitive with conventional loan fees in the state of Colorado.
The new fee schedule takes effect on November 1, 2016 & is as follows:
Who is Impacted?
The rise in fees, though relatively minimal, will be passed on to the prospective homeowner. However, as we recently discussed in our post on VA appraisals, the cost of an appraisal can be part of the negotiation process. It is not uncommon for the seller to agree cover most, if not all, of the cost of a home’s appraisal.
Who Determines VA Appraisal Fees?
It is the Department of Veterans Affairs who determine the VA appraisal fee schedule. Your lender is not at liberty to adjust Colorado VA appraisal fees.
The VA Loan Program
The VA loan program was designed to help active and retired members of the US armed forces secure affordable mortgage financing. While the VA is constantly working to keep the terms of these loans as cost effective as possible, they do also have to account for competition in the space. By increasing maximum allowable VA appraisal fees, the Department of Veterans Affairs is ensuring that homes financed through the program undergo an extensive appraisal process. This not only protects the prospective homeowner but the integrity of the VA home loan program. It is the findings of these in-depth home inspections that has allowed the Department of Veterans Affairs to successfully back millions of loans since the program was first established more than 70 years ago.
Get Preapproved for a VA Loan Today!
Now that you are up to speed with the latest changes to the Colorado VA appraisal fees, it’s time to take action. Whether you are looking to buy a home or refinance the one you already own under the VA loan program, we are here to assist. Complete a basic application and receive confirmation that you are preapproved. From there, you can begin shopping for your dream home or get started with your Interest Rate Reduction Refinance Loan (IRRRL). Have questions? We are here for you every step of the way! Contact us today.