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Is the borrower on the hook for the appraisal fee if the loan doesn't go through

  • October 02 2013 - US
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Answers (6)

Profile picture for fv0
Yes.  The appraisal fee would be lost if the loan is declined.  You should work with a loan officer that will be able to let you know if the loan will be declined or not.  The income, and credit should be calculated before an appraisal takes place.  If you are worried about the appraised value, you should have the loan officer pull up comparable homes in the area and see what they recently sold for.  More than likely your home would appraise for around the same.  
  • October 02 2013
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I think the real answer is that if you paid for the appraisal upfront, you'll not get the funds back if the loan is declined. If the Lender didn't take the money for the appraisal from you before completing the appraisal, then they can't make you pay for it, after declining the loan. 99% of appraisals are paid for before they are ordered for this reason. The way to approach this issue is to get a pre-approval based on your qualifications (credit, income, assets, etc...) and after these are vetted then pay for an appraisal.
  • October 02 2013
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Yes, if you paid for the appraisal up front.  If the loan officer chose not to charge you up front they may pay it for you.
  • October 02 2013
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With most lenders the answer is yes.
  • October 02 2013
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In most cases yes. Best way to find out-call your loan officer.
  • October 02 2013
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Yes, unless the lender eats it.
  • October 02 2013
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