In a typical mortgage, the appraisal is ordered in the loan process after three things line up: the property is under contract (or, for a refinance, you have submitted a loan application), the lender has sent you the Loan Estimate, and you have told the lender you intend to proceed so the appraisal fee can be collected. Only then does the lender assign an appraiser, usually through an Appraisal Management Company. The sequence is set by federal disclosure rules, not by lender preference.
What Has to Exist Before the Lender Can Order
An appraisal needs a specific property and a reason to value it. For a purchase, that reason is a fully executed purchase agreement signed by you and the seller. The contract supplies the agreed sale price and the legal description of the home. Without those, there is nothing to appraise, and the lender will not spend money engaging an appraiser.
For a refinance, there is no purchase contract because you already own the home. The completed loan application takes its place, giving the lender the property address, an estimated value, and the other details underwriting needs to begin.
New construction requires more. The appraiser cannot inspect a home that is not built, so Fannie Mae requires the appraisal to be based on “plans and specifications, an existing model home, or other information sufficient to identify its quality and character.”1Fannie Mae. Requirements for Verifying Completion and Postponed Improvements Blueprints, floor plans, material specs, and cost estimates all need to be in hand before the order goes out. After the home is built, the lender verifies completion through a follow-up appraiser visit or a signed letter from the borrower and builder.
The Loan Estimate and Your Intent to Proceed
Even with a signed contract, the lender cannot immediately charge you for an appraisal. The TILA-RESPA Integrated Disclosure rules require the lender to send you a Loan Estimate within three business days of receiving your completed application.2eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions That disclosure lays out your projected interest rate, monthly payment, closing costs, and the estimated appraisal fee.
Once you have the Loan Estimate, the lender still cannot collect any fees, including the appraisal fee, until you indicate your intent to proceed. You can do that any way you choose — signing the disclosure, sending an email, or confirming verbally — as long as the lender documents it.2eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions The single exception is a reasonable credit report fee, which the lender may charge to pull your credit before you give consent.3eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions The appraisal fee waits.
This pause exists to protect you from paying non-refundable fees before you have seen the loan terms. Once you consent, the lender collects the fee and starts the order.
How the Order Gets Placed
The Dodd-Frank Act prohibits anyone with a financial interest in the loan from coercing, influencing, or encouraging an appraiser to reach a particular value.4Office of the Law Revision Counsel. 15 USC 1639e – Appraisal Independence Requirements The rule does not silence normal communication. A lender can ask an appraiser to consider additional comparables, provide more detail, or correct errors. It cannot steer the appraiser toward a target number.
To keep the process clean, most lenders route orders through an Appraisal Management Company, which sits between the loan officer and the appraiser. The lender submits the property address, the purchase contract, and contact information for the listing agent or homeowner through the AMC’s portal. The AMC assigns the job to a licensed or certified appraiser with local market knowledge and sets expectations for access and turnaround.
Appraisal fees for a standard single-family home generally run from about $300 to $600, and higher for remote properties, multi-unit buildings, or complex assignments. The fee is generally non-refundable. If the loan falls through later, the appraiser has still done the work and you have still paid for it.
What Happens After the Order
Once assigned, the appraiser contacts you or your real estate agent to schedule a visit, usually within a few business days. During the inspection the appraiser photographs the interior and exterior, measures the home, and evaluates its condition, including roofing, heating and cooling systems, and any upgrades or defects.5HUD Exchange. Flowchart of the Real Estate Appraisal Process
The appraiser then compares the home to recent sales of similar nearby properties and adjusts for differences in size, condition, features, and location. The findings become a Uniform Residential Appraisal Report stating the appraiser’s estimate of market value.5HUD Exchange. Flowchart of the Real Estate Appraisal Process The report goes back through the AMC for quality review, then to the lender’s underwriting team.
When You Get a Copy
The Equal Credit Opportunity Act’s valuations rule requires the lender to give you a copy of every appraisal and written valuation developed for your loan. Delivery must happen at the earlier of two points: promptly after the report is completed, or at least three business days before closing.6eCFR. 12 CFR 1002.14 – Rules on Providing Appraisals and Other Valuations You can waive the three-day advance delivery and receive the copy at closing, but the waiver itself must be given at least three business days before the closing date.
The lender must also notify you of this right within three business days of receiving your application.7eCFR. 12 CFR 1002.14 – Rules on Providing Appraisals and Other Valuations If the loan does not close, you are still owed a copy, provided within 30 days of the lender’s decision that the transaction will not proceed.
How Long the Appraisal Stays Valid After It Is Ordered
If closing is delayed, the timing of when your appraisal was ordered starts to matter. Reports have a shelf life, and the rules differ by loan type.
- Conventional loans backed by Fannie Mae: valid for 12 months from the effective date. Once more than four months have passed, the lender must order an appraisal update before closing. If the update shows the property’s value has declined, a new appraisal is required. Desktop appraisals expire sooner and need a new report once the original is more than four months old.8Fannie Mae. Appraisal Age and Use Requirements
- FHA loans: the initial appraisal is valid for 180 days from the effective date. If it will expire before disbursement, the lender can order an update that extends validity to one year from the original effective date.9HUD. FHA Single Family Housing Policy Handbook
An expired appraisal means additional cost and additional time before the loan can close.
When No Appraisal Is Ordered at All
Not every loan reaches the ordering step. Fannie Mae and Freddie Mac offer alternatives that skip a traditional interior appraisal when the automated systems have enough data to estimate value confidently.
- Value acceptance, sometimes called an appraisal waiver: Fannie Mae’s Desktop Underwriter may eliminate the appraisal entirely for eligible transactions, including purchases, limited cash-out refinances, and cash-out refinances on one-unit properties (including condos) used as a primary residence or second home. Two-to-four-unit properties, manufactured homes, co-ops, and new construction are not eligible, and the loan must receive an Approve/Eligible recommendation.10Fannie Mae. Value Acceptance
- Desktop appraisal: a licensed appraiser analyzes the property using data, photos, and public records without visiting the home. This option is generally limited to one-unit primary residences with loan-to-value ratios at or below 90 percent for purchases.11Fannie Mae. FAQs – Property Valuation
- Hybrid appraisal: the appraiser reviews standardized property data and photos collected on-site by someone else, then completes the valuation remotely.12Freddie Mac. Desktop Appraisal FAQ
Whether one of these applies depends on the loan, property type, and how much neighborhood data the automated system already holds. Your lender will tell you if a waiver or alternative is offered. You cannot request one on your own.