A borrower may be responsible for ordering an appraisal primarily when they choose a lender who does not include appraisals in the overall costs associated with the mortgage process. In such scenarios, the borrower takes on the responsibility to ensure that an appraisal is performed because the lender may not facilitate this service as part of their fee structure.
The rationale behind this is tied to the lender's requirements for the loan approval process, which often includes determining the property value through an appraisal. If the lender does not handle the appraisal, it falls to the borrower to coordinate and pay for it, ensuring that the mortgage process can proceed.
In refinancing with a different lender or applying for a first-time mortgage, appraisals are typically part of the lender's process and costs, handled by the lender or included in closing costs. Similar rules apply to purchasing a newly constructed home, where builders or lenders frequently manage the appraisal to ensure compliance with financing requirements. Thus, the accountability lies with the borrower in the outlined scenario when opting for a lender that does not cover appraisal costs.