Digital Appraisals Change Home-Loan Closing Costs
The new Fannie Mae and Freddie Mac standard adds detail but may raise appraisal fees during the transition.
A new appraisal system is now required for mortgage reports sent to Fannie Mae and Freddie Mac. The UAD 3.6 format took effect Nov. 2, 2026. It replaces much of the old narrative paperwork with digital selections, checkboxes and additional property details. For buyers, the appraisal still helps determine whether the home supports the loan amount. A value below the purchase price can hold up closing until the difference is addressed.
The updated report asks appraisers to document individual rooms, improvements and systems in greater detail. Buyers may need information about remodeling, repairs, heating and cooling equipment, and appliances during the inspection. The added structure could help lenders review reports more quickly and reduce correction-related delays, which can lead to mortgage rate-lock extension charges. Those fees may be especially costly when rates are uncertain.
The transition is also increasing expenses in some markets. Clear Capital found appraisal fees averaging $65 more where it could compare the new and former formats. One mortgage-broker group reported older appraisals near $550 and newer reports closer to $850, while noting that local supply and demand also affect pricing. Appraisers and lenders are still adapting, so turnaround times and costs may change as more professionals use the system.
- Realtor.com News