When can a mortgage broker charge a borrower for an appraisal?

A mortgage broker can charge a borrower for an appraisal after the borrower has provided Intent to Proceed. This stage confirms the borrower's commitment to moving forward with the loan process, which is crucial before any fees associated with the appraisal can be charged. The Intent to Proceed indicates that the borrower has received the Loan Estimate and has acknowledged the terms of the loan they are contemplating.

Charging for an appraisal before obtaining the Intent to Proceed could lead to misunderstandings about the borrower's willingness to go forward with the loan, which is why it is important that the borrower has formally expressed this intent first. This process ensures transparency and keeps the borrower informed about all costs associated with their loan application.