# Appraisal

> An appraisal is an independent opinion of a home’s value that a lender uses to size the loan. What it covers, your right to a copy and low-value options.

URL: https://mortgage-math-us.com/glossary/appraisal/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

An **appraisal** is a written, independent opinion of how much a property is worth, based on its features and condition and on recent sales of comparable homes nearby. Lenders use it to confirm the home is enough security for the loan, and you have a right to a free copy promptly after it’s done, or at least 3 business days before closing, whichever comes first.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Copy of the appraisal due before closing (or promptly) | 3 business days | [CFPB, Regulation B 1002.14](https://www.consumerfinance.gov/rules-policy/regulations/1002/14) | Oct 28, 2026 |

## When the value comes in low

Lenders measure [loan-to-value](https://mortgage-math-us.com/glossary/loan-to-value-ratio/) against the lower of the price and the appraised value. Say you agree to pay $360,000 with 10% down, a $324,000 loan, and the appraisal says $345,000. Your LTV rises from 90% to 93.9%, which can mean costlier mortgage insurance or a smaller loan. Your options: renegotiate the price, cover the $15,000 gap in cash, ask the lender for a reconsideration of value with better comparable sales, or cancel under an appraisal [contingency](https://mortgage-math-us.com/glossary/contingency/) if your contract has one.

## What it isn’t

An appraisal protects the lender’s collateral. It isn’t a [home inspection](https://mortgage-math-us.com/glossary/home-inspection/): the appraiser notes obvious condition problems but doesn’t test the roof, wiring or plumbing for you. Some loans skip the appraisal when Fannie Mae or Freddie Mac accepts the value from its own data, a value acceptance or appraisal waiver. The lender usually chooses the appraiser, and you usually pay the appraisal fee as a closing cost. More in the [appraisal and inspection guide](https://mortgage-math-us.com/buying/appraisal-and-inspection/).

## Related terms

- [Down payment](https://mortgage-math-us.com/glossary/down-payment/), which you may need to raise after a low value

## Sources

- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [CFPB, Regulation B 1002.14](https://www.consumerfinance.gov/rules-policy/regulations/1002/14) — Lender must give you the appraisal at least this long before closing (or promptly) (Oct 28, 2026)
- [CFPB: What are appraisals and why do I need to look at them?](https://www.consumerfinance.gov/ask-cfpb/what-are-appraisals-and-why-do-i-need-to-look-at-them-en-167/)

_General information, not financial advice._