Do I Have to Pay for the Appraisal Out of Pocket, and Is It Refunded If My Loan Doesn't Close?
You don't pay for it when you apply. Federal rules keep a lender from charging any fee except a credit report fee until you've received your Loan Estimate and said you want to go ahead. After the appraisal is ordered, though, the fee usually isn't refunded if the loan falls through, because the appraiser has done the work. Some loans skip the appraisal, and the fee, entirely.
Last updated September 29, 2026When is the appraisal fee due?
Not at application. Under federal disclosure rules, the only fee a lender can collect that early is for a credit report. The appraisal fee can be charged once you've received your Loan Estimate and told the lender you want to proceed.
Is the fee refundable if the loan falls through?
Generally not, once the appraisal is ordered or done; the fee pays for work already performed. On your Closing Disclosure, an appraisal you paid for earlier is usually marked as paid outside of closing, so you aren't charged twice. The main way to get the cost back is a seller or lender credit negotiated to cover it, and that's something you arrange up front.
Can I avoid paying for an appraisal?
It depends on your situation:
- You have plenty of equity: your loan may qualify for an appraisal waiver through Fannie Mae's or Freddie Mac's systems, which removes the fee.
- You're using a VA loan: VA sets the maximum appraisal fee by region in its fee schedule, so the cost is capped.
- A seller or lender credit is part of your deal: it can offset the appraisal cost, if you negotiate it.
- A lender runs a promotion that covers the appraisal: confirm it applies to your loan before counting on it.
How much does an appraisal cost?
It depends on where you live, the property and the loan program. Many appraisals cost a few hundred dollars, and complex properties or some markets cost more. Your Loan Estimate shows the fee for your loan before you commit.
| At application | Only a credit report fee can be charged |
|---|---|
| After the Loan Estimate and your intent to proceed | The appraisal fee can be charged |
| The loan doesn't close after the appraisal | The fee usually isn't refunded |
| Plenty of equity | An appraisal waiver may skip the fee |
| VA loan | VA caps the appraisal fee by region |
Related questions
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
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
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.