Original article updated 2026-07-30. Retained for reference. Confirm current requirements with an appropriate provider or administering agency.
Direct answer
Most purchase mortgages and many refinances require an appraisal, but some eligible files receive an appraisal waiver or alternative valuation through automated underwriting. The lender—not the buyer, seller, or real estate agent—determines whether the transaction can proceed without a traditional appraisal.
Why lenders use appraisals
The appraisal provides an independent opinion of market value and reviews property characteristics relevant to the loan. It helps the lender confirm that the collateral supports the requested amount. A waiver may depend on the property type, occupancy, loan purpose, available data, and automated findings. Manufactured homes, complex properties, new construction, and certain higher-risk transactions are less likely to qualify.
What happens if the value is low?
A low value can increase loan-to-value, reduce the approved loan amount, affect mortgage insurance, or require a different structure. A buyer may renegotiate, add cash, request a reconsideration with relevant comparable sales, or use an appraisal contingency to exit if the contract permits. Review the appraisal charge on the Loan Estimate, see the mortgage process, and test refinance scenarios with the refinance calculator.
Frequently asked questions
Can I choose the appraiser?
Generally no. The lender or its appraisal management process orders the appraisal to preserve independence, although the borrower typically pays the fee.
Does an appraisal waiver mean the property has no value review?
No. The lender may rely on automated data and underwriting findings instead of a traditional appraisal, subject to program rules.