Many borrowers are surprised when they’re asked to complete an appraisal authorization form or provide payment information early in the loan process. The reason is simple: most lenders want to order the appraisal as soon as the loan is ready so they don’t lose valuable time waiting on appraiser availability.

In many mortgage transactions, the appraisal is considered a third-party fee paid directly to the appraiser or appraisal management company (AMC). Depending on the lender, the appraisal may be collected up front or paid by the lender and reimbursed at closing.

When a lender asks for an appraisal authorization form, it does not necessarily mean the appraisal is being ordered immediately. Instead, it allows the lender to move quickly once the loan has reached the appropriate stage and all required disclosures have been acknowledged.

Appraisers typically require payment for their services regardless of whether the loan ultimately closes. Because of this, many lenders collect appraisal fees in advance rather than risk being responsible for the cost if a transaction is canceled after the appraisal has already been completed.

If you’re also planning a home inspection, it’s generally a good idea to schedule that inspection as soon as possible. Many buyers prefer to complete the inspection early so any significant concerns can be identified before the appraisal is ordered, helping avoid unnecessary appraisal expenses if the transaction falls apart.

The goal is not to create extra paperwork. The goal is to make sure the appraisal can be ordered quickly when the loan is ready and keep your closing date on track.