The appraisal is important to the bank as the loan is based on a percentage of the value of the property (say 75% loan to value) If the value goes down the amount that they will loan you goes down. The lender is going to sell it to an investor which bases the value of the investment on the amount of equity in addition to your qualifications. You best bet is to fight the appraisal. Maybe you could call some local realtors and see if the bank is under valueing your property. If the banks appraisal is correct, you may have lost your up front fees. Paying upfront fees when you don't know what the appraisal will be, and having to pay for an appraisal can hurt if the value is not there. I have many clients ask me before they get the loan what I think the appraisal will come in at. They don't want to put out fees if they know the value is not there.