After the appraisal report is complete, it goes to your lender for review -- typically within 1-3 days. The lender's underwriter checks whether the appraised value supports the loan amount, then you'll receive a copy and the transaction moves forward (or you'll need to negotiate if the value came in low).
Appraiser Submits Report
When I finish the appraisal report:
- I compile all documentation (photos, measurements, comparable sales analysis)
- I write the formal report
- I submit it to the appraisal management company (AMC) or directly to the lender
- The lender receives it (timeline: 1-3 days after submission)
You usually don't see the report immediately. The lender sees it first.
Lender Reviews Appraisal
When your lender receives the appraisal:
- Automated Review: Computer systems flag potential issues (unusual values, missing data, etc.)
- Human Review: Underwriter reads the appraisal and checks for:
- Does the appraisal support the loan amount? - Is the property value sufficient for the loan? - Are there any concerns or red flags? - Is the report complete and professional?
- Appraisal Quality Check: Lender might question the appraiser if something seems wrong
This takes 1-5 business days typically.
Three Possible Outcomes
Outcome 1: Appraisal Supports Loan
Most Common Scenario
- Appraisal shows home value ≥ loan amount
- Lender approves based on appraisal
- Process moves forward to closing
- You never see an issue
Example:
- You offered $500,000
- Appraisal: $500,000
- Lender: "Good to go"
Outcome 2: Appraisal Comes in LOW
Second Most Common Scenario
- Appraisal shows home value < loan amount
- You have a gap between offer and appraised value
- Your options:
1. Renegotiate with seller to lower price 2. Bridge the gap (pay difference out of pocket) 3. Walk away (using appraisal contingency)
Timeline: 3-5 days for negotiation; if unresolved, deal is at risk.
Outcome 3: Appraisal Has Issues
Less Common but Serious
The appraiser:
- Didn't measure square footage correctly
- Missed deferred maintenance
- Used wrong comparable sales
- Made a clerical error
Lender might:
- Request appraisal reconsideration
- Order a second appraisal
- Ask the appraiser to explain
Timeline: 5-10 days to resolve.
Timeline After Appraisal Submission
| Day | What Happens |
|---|---|
| 0 | Appraiser submits report |
| 1-2 | Lender receives report |
| 2-3 | Lender's automated/initial review |
| 3-5 | Lender's underwriter review |
| 5-7 | Lender contacts you with approval or issues |
What You Might Hear
If Appraisal is Good: Lender: "Appraisal supports the value. We can move forward." Your next step: Finalize closing details.
If Appraisal is Low: Lender: "Appraisal came in at $475,000. You need to renegotiate with the seller or increase your down payment." Your next step: Negotiate or decide to walk.
If There Are Issues: Lender: "The appraiser needs to clarify their comparable sales selection. We're requesting a reconsideration." Your next step: Wait for appraiser's response (5-10 days).
Getting a Copy of the Appraisal
After the lender approves it, you can usually:
- Request it from your lender
- Pay a copying fee if the lender charges one
- Read it and understand how your home was valued
Most lenders provide copies upon request.
Using the Appraisal Report
The appraisal report contains:
- Property description
- Comparable sales used
- Adjustments made
- Condition assessment
- Value conclusion
You can use this to:
- Understand your home's market value
- Challenge the value (if you disagree)
- Get information for refinancing future
- Provide to other lenders (might avoid re-appraisal costs)
If Appraisal Comes in Low
Timeline for Resolution:
Day 1-2: You learn the appraisal came in low
Day 2-4: You negotiate with seller for price reduction
Day 4-5: Seller accepts, rejects, or counters
Day 5-7: Agreement reached or deal falls apart
If deal survives the low appraisal, closing proceeds normally.
Appraisal Contingency Deadline
Your purchase contract has a deadline for appraisal contingency (usually 10-14 days from inspection period).
After that deadline, you can't use the appraisal contingency to cancel the deal.
Know your deadline. It's critical.
Transferring Appraisals
If you ordered your own appraisal (not through lender):
- You own the appraisal report
- You can share it with other lenders
- Might save you money on future appraisals
If lender ordered it:
- Lender owns it initially
- You can request a copy
- Sharing with other lenders might be allowed (check with lender)
Post-Appraisal Issues
Sometimes issues emerge after appraisal:
You Found Major Repair Need: Inspection found roof needs $20,000 replacement. Appraisal didn't account for this. You might renegotiate further.
Condition Deteriorated: Between appraisal and closing, something broke. You might request appraisal update or negotiate repair credits.
These are rare but possible.
Normal Next Steps (After Good Appraisal)
- Lender approves based on appraisal
- Title company orders title search
- Final walk-through happens
- Closing costs are calculated
- Closing is scheduled (usually 5-7 days later)
- Closing happens
Bottom Line
After the appraisal report is submitted:
- Lender reviews it (1-5 days)
- Lender either approves, flags issues, or requests changes
- You're notified of the outcome
- Deal moves forward, stalls, or ends
Most appraisals support the transaction and cause no issues.
When they do, you have limited time to resolve.
Know your timeline. Know your options.
That's how you handle post-appraisal process.