A VA cash-out refinance loan requires an appraisal to determine your home's current value and equity and that you aren't borrowing more than your home is worth.
The lender orders the appraisal as part of the loan process. The appraiser visits your home, inspects it, and prepares a report the lender uses to calculate your loan amount.
The value of your home, as determined by the appraisal, may differ from the price you paid or what you think it's worth. Nevertheless, the appraised value affects the amount of cash you can take out when you refinance, so it's a good idea to have a realistic understanding of your home's value before applying for a VA cash-out refinance.