Appraisal Fee Deducted From Closing Costs?

I am in the process of buying a home and just paid about 500.00 for appraisal. will that be taken off in what I will owe in closing costs? or is that an added fee?

2 Answers

Your appraisal fee is separate from your closing costs fee. You should have received a "GFE, Good Faith Estimate" that will show you roughly what your costs are in purchasing the property and securing a loan. The cost of appraisal is generally in the " Other Settlement Services" category. The GFE will show you your loan terms and settlement charges. It will show you the expiration date of the anticipated interest rate on your loan as well. After the date of expiration of the offered interest rate, if you have not "locked" in your current interest rate, it may change after that date.

Typically you have a specific number of "closing cost" items associated with obtaining the loan and transferring ownership to you including some charges of the closing attorney or title company for title search, and handling the process of getting lender paperwork signed,  This will include things like lenders fees they charge for originating the loan, credit check, underwriting fees, etc.  If the lender requires you to pay any of those items prior to closing they will show up on the final closing statement as  "PAID OUTSIDE CLOSING" generally abbreviated as POC.  You will see them on the  Truth in Lending statement you receive before closing but you will not be charged those things at closing.   You may have some items on your closing statement that are by your choice. 

For example if you choose to have a property survey or home inspection these items are often paid at the time the service is provided and may also show up on the final closing statement.  They are added fees that are often your choice. Again they are not charged to you at closing and show up as POC on closing statement  Associated with this are also some "prepaid items" such as first year insurance and escrows for taxes and continuing insurance.  If an escrow account is to be established these will also be included although they are not technically closing costs.