When buying a home, understanding the Appraisal Delivery Schedule is essential. This federally mandated timeline requires mortgage lenders to provide you, the buyer, with a copy of the property appraisal report either immediately after it’s completed or at least three business days before you close your loan. This policy originates from the Consumer Financial Protection Bureau’s (CFPB) implementation of the ECOA Valuations Rule designed to protect borrowers from last-minute surprises regarding home value.
Here’s how it works:
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Mortgage Application: Upon applying for a first-lien mortgage, the lender must inform you within three business days about your right to receive the appraisal report.
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Completion of Appraisal: A licensed appraiser assesses your home’s market value by inspecting the property and comparing it with recent sales of similar homes.
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Delivery of Appraisal Report: The lender must deliver this report to you as soon as it’s ready or no later than three business days before your loan closing (consummation).
This timeframe protects you by allowing sufficient time to review the appraisal details, ask your lender questions, and negotiate terms if the appraisal comes in lower than expected. While you have the option to waive the three-day waiting period if you need to expedite closing, you cannot waive your right to receive the report entirely.
If the appraisal value is lower than the purchase price, knowing the report early gives you the chance to revisit negotiations, explore paying the difference, or reassess your loan strategy. If your loan application is denied, lenders still must provide you the appraisal report within 30 days after giving notice of denial.
Common Questions:
- Who pays for the appraisal? Typically, the borrower covers the appraisal cost, which usually ranges from $300 to $600 depending on location and property type.
- Does the rule apply to all mortgages? It applies to most first-lien loans secured by a dwelling, including purchases and refinances.
- What if my lender fails to deliver the report on time? Contact your loan officer promptly, and if unresolved, you may file a complaint with the CFPB.
For further reading on related appraisal topics, see Fair Market Value Appraisal, Appraisal Contingency, and Mortgage Closing Costs.
Learn more about federal regulations at the Consumer Financial Protection Bureau’s website: CFPB ECOA Valuations Rule.
Understanding the Appraisal Delivery Schedule gives you better control over your home purchase, ensuring transparency and time to make informed mortgage decisions.
