Do I Have to Pay for the Appraisal Out of Pocket, and Is It Refunded If My Loan Doesn't Close?

Q: Are There Situations Where I Might Not Pay for an Appraisal at All?

It depends on your situation.If you have significant home equity or a low loan-to-value ratio, Fannie Mae or Freddie Mac's automated appraisal waiver programs may allow your loan to skip a traditional appraisal entirely, which removes the fee altogether.If you are using a VA loan, rules that took effect January 1, 2025 changed how this works: lenders and brokers can no longer pay the appraisal fee themselves and then get reimbursed by you at or before closing. You typically pay the appraisal fee directly, upfront, when the lender orders it, unless the seller agrees to cover it as part of the purchase agreement. Late or rush fees on a VA appraisal cannot be passed on to you either way.If a seller concession or lender credit is built into your offer, the appraisal cost may effectively be offset, though this has to be negotiated as part of the deal.Some lenders occasionally cover the appraisal fee as part of a promotional offer, but this is not the norm, so confirm directly with your loan officer whether it applies to your loan before assuming it does.

You generally do not pay for an appraisal right when you apply, and once it is ordered, the fee is typically not refunded even if the loan later falls through. Federal rules keep lenders from collecting an appraisal fee before you have your Loan Estimate and have said you want to move forward. Only a credit report fee can be collected earlier. What happens after that depends on your loan type and how much equity you have.

Last updated July 22, 2026

When Is the Appraisal Fee Actually Due?

Under federal mortgage disclosure rules, a lender cannot charge you for an appraisal at the initial application stage. The only fee that can be collected that early is a credit report fee. The appraisal fee typically becomes due once you have received your Loan Estimate and have told the lender, in writing or by another clear signal, that you want to proceed. In practice this usually lands about one to two weeks into the process, not on day one.

Is the Appraisal Fee Refundable If the Loan Falls Through?

Once an appraisal has been ordered or completed, the fee is generally not refundable, even if your loan does not close. The appraiser has already done the work, so the charge is considered earned. On your Closing Disclosure, the appraisal fee is typically listed as "paid outside of closing" so you are not billed for it twice. The only common way to get that money back is if a seller concession or a lender credit is specifically negotiated to cover it, which is a deal term you would arrange upfront, not something that happens automatically.

Are There Situations Where I Might Not Pay for an Appraisal at All?

It depends on your situation.

If you have significant home equity or a low loan-to-value ratio, Fannie Mae or Freddie Mac's automated appraisal waiver programs may allow your loan to skip a traditional appraisal entirely, which removes the fee altogether.
If you are using a VA loan, rules that took effect January 1, 2025 changed how this works: lenders and brokers can no longer pay the appraisal fee themselves and then get reimbursed by you at or before closing. You typically pay the appraisal fee directly, upfront, when the lender orders it, unless the seller agrees to cover it as part of the purchase agreement. Late or rush fees on a VA appraisal cannot be passed on to you either way.
If a seller concession or lender credit is built into your offer, the appraisal cost may effectively be offset, though this has to be negotiated as part of the deal.
Some lenders occasionally cover the appraisal fee as part of a promotional offer, but this is not the norm, so confirm directly with your loan officer whether it applies to your loan before assuming it does.

How Much Does an Appraisal Typically Cost?

Costs vary by location, property type, and loan program, so treat any number as a rough estimate rather than a quote. Many borrowers see appraisal fees land somewhere in the mid hundreds of dollars, though costs can run higher, sometimes over a thousand dollars, in certain markets or for more complex properties. Your Loan Estimate will show the specific fee for your loan before you are asked to commit to it.

Key facts
At initial application	Only a credit report fee can be charged; no appraisal fee yet
After Loan Estimate + intent to proceed	Appraisal fee can be charged, usually within one to two weeks
Loan doesn't close after appraisal	Fee is generally not refunded
High equity / low loan-to-value	May qualify for an appraisal waiver, skipping the fee
VA loans (as of Jan. 1, 2025)	Borrower typically pays upfront directly; lender can't pay and get reimbursed later; no late/rush fees passed to veteran

Sources

https://www.consumerfinance.gov/rules-policy/regulations/1026/19
https://files.consumerfinance.gov/f/201409_cfpb_tila-respa-integrated-disclosure-rule_compliance-guide.pdf
https://www.fhfaoig.gov/Content/Files/WPR-2018-006.pdf
https://www.amerisave.com/glossary/appraisal-waivers-what-home-buyers-need-to-know-in
https://www.rocketmortgage.com/learn/do-you-need-an-appraisal-when-refinancing
https://www.mqmresearch.com/blog/faq-va-and-itemized-fees
https://www.benefits.va.gov/HOMELOANS/appraiser_fee_schedule.asp
https://www.rocketmortgage.com/learn/va-appraisal-fees
https://www.redfin.com/blog/who-pays-for-home-appraisal/
https://www.redfin.com/blog/home-appraisal-cost

Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.