When you’re buying a home, the appraisal helps determine your loan-to-value ratio (LTV) and confirms the property’s value. One question we often hear is, “When is the appraisal ordered in the loan process?”
The short answer: after your offer is accepted.
In this blog, we’ll break down the full mortgage loan timeline, when and why the appraisal is ordered, how long the process takes, and what happens once it’s complete.
Mortgage Loan Process Timeline
Initial Steps in the Loan Application
You’ll submit your loan application along with financial documents to prove your income. By the end of this stage, your offer should be accepted, which means the purchase agreement is finalized and the property is officially under contract.
The Middle Phase: Review and Appraisal Ordering
This is where the details are finalized. If you choose to get a home inspection, which we advise, it happens during this time. Your lender takes a deeper dive- conducting a title search, reviewing and selecting homeowner’s insurance, and verifying the financial documents submitted earlier. Once the purchase agreement from days 1-5 is confirmed, the lender processes it and orders the appraisal.
TAG Tip: Before you start house hunting, it’s smart to get pre-approved and connect with a lender. This helps you understand your budget and shows real estate agents that you’re serious about buying. Pre-approval signals commitment and makes the whole process smoother.
Final Stages: Appraisal Review and Final Loan Steps
After the appraiser submits the report, your mortgage underwriter reviews it alongside the rest of your loan file. From there, a few different outcomes are possible, which we’ll break down in the next section. If everything checks out, your lender issues the “all clear to close” and sends the closing documents to all parties involved, setting the closing date.
What Happens After the Home Appraisal?
The next steps depend on the appraiser’s findings:
- The appraisal came back lower than your offer: This creates an appraisal gap- the home’s value is less than what you’ve agreed to pay. You may negotiate, pay the difference our challenge the report. Read more about your options
- The appraisal came back higher than the offer. Good news! You’ve got instant equity. The seller can’t negotiate, and you move forward with a stronger financial position. Learn how this benefits you
- The appraisal matches the offer. No surprises here. You’re “clear to close” without any adjustments needed.
No matter how your appraisal turns out, understanding possible outcomes and your options for each helps you stay prepared and confident as you move toward closing.
TAG Tip: For unfinished homes, especially new builds, appraisers will often value them “subject to” completion. Once the work is done, we revisit the site, take updated photos, and submit a follow-up to the lender to confirm it’s complete.
How Long Does A Home Appraisal Take?
While many appraisal reports take upwards of 5 business days or longer to complete, our cloud-based system and team collaboration enable us to produce reports in just 3-5 business days after inspection, keeping your loan process moving smoothly.
- Day 1: The lender orders the appraisal and we promptly schedule the inspection, sometimes the same day.
- Day 2: Our team pulls comporable property data and completes the on-site inspection.
- Days 3-4: Our valuation team analyzes the data, researches the market, and builds the report.
- Days 5: The report undergoes a final review and is then delivered to the lender.
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