Why did I receive different valuations during the mortgage application process?

A valuation is an estimate of what a home may be worth, using tax assessments and sales information for the local market, plus facts about the house such as square footage, bedrooms, bathrooms, and year built. When you buy or refinance, the lender will obtain at least one valuation. Whatever the source, the CFPB says the lender must give you copies of each valuation it has.

Those estimates can include a full appraisal by a licensed appraiser after an inspection, which is the most common type and usually relies on nearby comparable sales. They can also include a broker price opinion from a real-estate sales professional, often used to support a listing price, or an automated valuation model that uses a computer comparison of the home's features with recent local sales.

A lender may run an automated model early just to see whether the stated value looks reasonable, then later order a full appraisal. The numbers can differ because they are estimates, may use different comparables, or may have been done at different times or for different purposes. If the gap is large, the lender decides which figure is most reliable. You may also order your own independent appraisal, which can mean an extra fee.