Before signing your loan documents, borrowers are often asked the following question:
“Do you choose to waive your right to receive a copy of the appraisal at least three business days before closing?”
(Waive the right to receive the appraisal copy at least three business days before closing)
So what exactly is the difference between waiving and not waiving this right?
1. What Is the Right to Receive the Appraisal Early?
Under federal regulations, lenders are required to provide applicants with a copy of the property appraisal at one of the following times:
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At least three business days before closing, or
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Immediately after the appraisal is completed
The purpose of this rule is to ensure borrowers have enough time to review the appraisal, understand the property’s value, and raise questions or request a reconsideration if needed.
2. What Does It Mean to Waive This Right?
Some borrowers prefer to move the loan process forward more quickly and therefore choose to waive the right to receive the appraisal three days before closing.
By doing so:
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You agree to receive the appraisal on or closer to the closing date
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The loan process may be completed faster
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However, you will have less time to review the appraisal before closing
3. Comparing the Two Options
1. Do Not Waive
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Explanation: The lender must provide the appraisal at least three business days before closing.
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Impact: You have more time to review the appraisal, ask questions, or request corrections.
2. Waive the Right
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Explanation: You sign a waiver agreeing to receive the appraisal on or near the closing date.
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Impact: The loan process may be faster, but you have less time to review or address potential issues with the appraisal.
4. Examples
Example 1
Li is applying for a purchase mortgage, with closing scheduled for October 10.
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If Li does not waive the right:
The lender must provide the appraisal by October 7 (three business days before closing). -
If Li waives the right:
The appraisal may be delivered on the closing date, allowing the loan to close the same day.
Example 2
If Li later cancels the loan or the transaction does not close:
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The lender is still required to provide a free copy of the appraisal within 30 days
5. Key Considerations Before Waiving
1️⃣ Importance of the Appraisal
If the appraised value comes in lower than expected, you may need time to communicate with the lender, seller, or appraiser. Receiving the appraisal early allows for better preparation.
2️⃣ Timing and Urgency
If your closing date is tight and the loan terms are already finalized, waiving the right may help ensure an on-time closing.
3️⃣ Waiving Is Voluntary
⚠️ Lenders or mortgage brokers cannot require you to waive this right. Any waiver must be voluntary, informed, and signed by you.
6. Final Thoughts
The appraisal is a critical component of the mortgage process.
It not only affects your loan amount but can also influence your decision to proceed with the transaction.
Choosing whether to waive your right to receive the appraisal early is ultimately a balance between:
Closing speed and time to review important information
Before signing, consider asking your lender:
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When will I receive the appraisal?
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Will not waiving affect my closing date?
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If I waive, could I miss important information?
With the right understanding and thoughtful decision-making, you can move through the loan process efficiently and with confidence.