MortgageMath US

Mortgage glossary

Appraisal

An independent opinion of what the home is worth, ordered for the lender.

By the Editorial team Last reviewed 1 min read

3business days

You get a copy at least this long before closing (or sooner)

CFPB, Regulation B 1002.14 · Oct 28, 2026

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

3business days

Copy of the appraisal due before closing (or promptly)

CFPB, Regulation B 1002.14 · Oct 28, 2026

When the value comes in low

Lenders measure loan-to-value 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 if your contract has one.

What it isn’t

An appraisal protects the lender’s collateral. It isn’t a 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.

Sources

  1. US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
  2. CFPB, Regulation B 1002.14 — Lender must give you the appraisal at least this long before closing (or promptly) (Oct 28, 2026)
  3. CFPB: What are appraisals and why do I need to look at them?

Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.

Buying a homeAppraisal and home inspectionWhat the appraiser and the inspector each check, your appraisal rights, low-appraisal options and contingencies.6 min readBuying a homeHow much down payment do you need?Minimums by loan type, what each down payment costs per month, gift rules and the PMI trade-off.5 min readGlossaryClosing costsLender fees, third-party services, taxes and prepaids you pay at closing, on top of the down payment.1 min readGlossaryCash to closeDown payment plus closing costs, minus your deposit and credits: the amount you bring to closing.1 min readGlossaryEarnest moneyThe good-faith deposit paid with a purchase contract, credited to you at closing.1 min readGlossaryOrigination feeThe lender’s charge for processing, underwriting and funding your loan, shown in section A.1 min readGlossaryDiscount pointsAn upfront fee paid to the lender at closing to buy a lower interest rate.1 min readGlossaryLender creditMoney from the lender toward closing costs, in exchange for a higher interest rate.1 min readGlossaryPrepaid itemsInterest, insurance and taxes paid at closing ahead of their due dates (section F of the Loan Estimate).1 min readGlossaryTitle insuranceInsurance against title problems from before your purchase; lenders require their own policy.1 min read

On this page

  1. Quick answer
  2. Key facts
  3. When the value comes in low
  4. What it isn’t
  5. Related terms
  6. Sources

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