Yes, you pay for the appraisal before closing, not at the settlement table. Lenders collect the fee shortly after you apply for the mortgage — often within the first week or two — because the appraiser has to inspect the property and deliver a report while underwriting is still in progress. For a standard single-family home, expect to pay somewhere between $350 and $550.
When the Fee Is Actually Collected
The lender orders the appraisal once you have a signed purchase agreement and enough paperwork in to move forward. Most lenders require payment before the appraiser is even dispatched to the property. You will usually see a secure payment link or a credit card authorization form from the lender or the appraisal management company handling the assignment. It is a standalone charge, separate from the wire you will later send for your down payment and remaining closing costs.
Paying early keeps the loan on schedule and gets the valuation into underwriting without delay. It also means the money is spent whether or not the deal closes. If the lender denies the loan, the value comes in low and the deal collapses, or you change your mind, the appraisal fee is not refundable. You paid for a professional service, not for a particular outcome or a guaranteed closing.
How Much to Budget
For a typical single-family home, plan on $350 to $550. A handful of variables can push that higher:
- Property size and complexity. Large homes, unusual layouts, or significant acreage take longer to evaluate.
- Location. Major metros and high-cost areas run higher, and rural properties can carry travel surcharges.
- Property type. Two-to-four-unit buildings commonly run $500 to $1,000 or more because the appraiser evaluates multiple units and considers rental income.
- Loan program. FHA and VA appraisals can cost more than conventional appraisals because of extra property-condition requirements.
Who Pays
The buyer pays. The appraisal is a condition of the buyer’s financing, so the cost sits with the person applying for the mortgage. The lender arranges the appraiser (usually through an appraisal management company), but the charge is yours.
Sellers sometimes agree to contribute toward the buyer’s closing costs, and a seller credit can effectively reimburse the appraisal fee at closing. Even then, the buyer still fronts the money upfront; the credit just reduces the cash due at the table. Those arrangements are set out in the purchase contract or an addendum.
How the Appraisal Fee Appears on Your Closing Disclosure
This is the part that trips up a lot of first-time buyers. Your lender is required to deliver a Closing Disclosure — an itemized breakdown of every cost in the transaction — at least three business days before closing.1eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions The appraisal fee will show up on that document even though you already paid it weeks earlier.
Costs you paid before closing are marked “Paid Outside of Closing,” abbreviated P.O.C., along with the name of the party who made the payment.2Consumer Financial Protection Bureau. 12 CFR 1026.38 – Content of Disclosures for Certain Mortgage Transactions (Closing Disclosure) When you review the disclosure, find the appraisal line and confirm the P.O.C. label is there. If it is missing, call your loan officer right away. Without that designation, the fee can end up in the cash-to-close total and you could be charged a second time. The three-business-day review window exists precisely so you have time to catch mistakes like this.
Your Right to a Free Copy of the Report
You paid for the appraisal, and federal law entitles you to a free copy. Under Regulation B, your lender must give you a copy of every appraisal or written valuation tied to your mortgage application at no extra charge, promptly after completion or at least three business days before closing, whichever comes first.3Consumer Financial Protection Bureau. 12 CFR 1002.14 – Rules on Providing Appraisals and Other Valuations You can waive the three-day timing and agree to receive the copy at or before closing, but the waiver itself has to be obtained at least three business days before closing.4eCFR. 12 CFR 1002.14 – Rules on Providing Appraisals and Other Valuations The lender can charge you to conduct the appraisal; it cannot charge you to hand over the report.
When You Might Not Need to Pay at All
Not every mortgage requires a traditional appraisal. Both Fannie Mae and Freddie Mac run programs that waive the appraisal requirement for qualifying loans, which can save you several hundred dollars and shorten the closing timeline.
Fannie Mae calls its program “value acceptance.” The automated underwriting system looks at property data and decides whether the value can be reliably estimated without a physical inspection. Several transaction types are ineligible, including:
- Multi-unit properties (two to four units)
- Co-ops, manufactured homes, and leasehold properties
- New construction
- Purchases or estimated values of $1,000,000 or more
- Transactions using gifts of equity
- Manually underwritten loans
Freddie Mac runs a parallel program called Automated Collateral Evaluation (ACE). When ACE applies, the appraisal report requirement is waived entirely. Your lender’s underwriting system determines whether your loan qualifies for either program; you cannot request a waiver on your own. Ask your loan officer early whether a waiver is in play — if it is, you avoid both the fee and the appraisal timeline.
Quick Checklist Before You Pay
- Confirm the fee amount in writing before you authorize payment, and keep the receipt from the lender or appraisal management company.
- Ask whether your loan is eligible for a Fannie Mae or Freddie Mac appraisal waiver before an appraisal is ordered.
- When your Closing Disclosure arrives, check that the appraisal fee carries the P.O.C. label so you are not charged twice.
- Request your free copy of the completed appraisal report; the lender has to provide it.
- Understand that the fee is non-refundable if the deal falls apart for any reason.