Can an appraisal fee be refunded


I was approved for a mortgage re-finance and paid $500 to have my property appraised. After 3 ½ to 4 months, I was told that the loan was not approved because the lender did not figure in a monthly HOA payment of $195.00 One issue I have is that this application was put in with (what was then) my current mortgage holder, and they were fully aware of the monthly cost before the application was filed. Secondly, since the non-approval was a result of an oversight on their part, and I would have been rejected immediately had the cost been considered initially, am I entitles to a refund of the $500 appraisal fee?


If the reason your loan was declined was a high debt to income ratio caused by the failure to include the HOA fee, your loan officer clearly failed to do his job thoroughly. That being said, once an appraisal is ordered, the appraiser who performs it expects to be paid, whether the loan ends up closing or not. If the SOLE reason for your turn down was the failure to account for the HOA fees, you may want to discuss your situation with the manager at the mortgage office you used. If it were a shop I was managing, I would certainly consider negotiating with you, in addition to giving my loan officer a stern lesson on the importance of including HOA fees on all loan applications prior to ordering appraisals!

Answered over 4 years ago
Ted Rood
1482 1 8
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