Home Appraisal Types

Full Home Appraisal in Texas

A full appraisal is the most thorough and common home appraisal type. In the mortgage industry, this is often called a “1004” because of the form used.

Here’s what happens during a full appraisal:

• A licensed appraiser visits the home in person
• They inspect both the interior and exterior
• They assess the quality and condition of the materials
• Photos are taken throughout the property
• Square footage is measured and verified
• Comparable recent sales are reviewed to determine value

This is the standard option for most purchase and refinance loans in Texas. Whether the home has gold-plated fixtures or 1970s shag carpet, the appraiser is going to document it all. If the condition is excellent, it will reflect positively in the value. If the home is outdated or missing essentials like kitchen cabinets, the appraisal will reflect that too.

In Dallas and surrounding areas, this appraisal type is usually required when the borrower’s down payment is below 20% or the property is unique enough that more detailed verification is necessary.

Estimated cost: $600 to $700 depending on location, size, and complexity.

Exterior-Only Home Appraisal in Texas

Exterior-Only Appraisal (Drive-By)
Also known as a “2055,” this type of home appraisal involves less work and does not require the appraiser to enter the home. The appraiser drives by the property, takes exterior photos, and uses available data to assess its value.

The appraiser still checks local comps and market trends but doesn’t review interior features or finishes. This is often used when:

• There is sufficient data from recent sales nearby
• The home is in a standard, well-documented area
• The borrower is putting down at least 15%
• The loan is considered low risk

For example, if you’re refinancing a property in a Dallas suburb and have significant equity in the home, the system may allow this type of appraisal.

Because there’s no in-home inspection, this appraisal type takes less time and typically costs less.

Estimated cost: $300 to $400

Exterior-only reports are rarely used when getting a first-lien mortgage to buy or refinance a home. These exterior-only reports are typically used for appraisal reviews (more information below) or for stand-only second lien mortgages done by small banks.

Property Inspection Waiver (Appraisal Waiver)

While not technically an appraisal, a Property Inspection Waiver (PIW) is something that’s becoming more common in strong real estate markets like Dallas and across North Texas.

A PIW means no appraisal is needed. The automated underwriting system has determined there is enough data about the borrower, the property, and the market to skip the process altogether.

You may qualify for a waiver if:

• You’re putting down 20% or more
• You have excellent credit
• The home is in a neighborhood with many recent sales
• The loan meets Fannie Mae or Freddie Mac criteria

This is more likely when buying a home in a dense area with a lot of data (as opposed to rural parts of Texas). The waiver reduces costs and speeds up the loan process, but it is entirely dependent on the AUS findings. Neither you nor the lender can request one manually.

Rental Analysis

If you’re purchasing an investment property, you may be required to get a rental analysis, also known as a “1007.”

This add-on looks at what similar homes in the area are renting for. The appraiser uses this data to estimate the rental income potential of the subject property. This helps the lender understand whether the property could generate enough rent to cover the mortgage.

The rental analysis is added to a full appraisal—it does not replace it.

When is a rental analysis required?

• For most investment property purchases
• For DSCR loans and investor-focused loan programs
• When rental income is being used to qualify for the loan

Estimated cost: An additional $150 to $200 on top of the full appraisal cost

In a competitive rental market like Dallas, this data can be incredibly helpful for both lenders and investors.

Broker Price Opinion (BPO)

Broker Price Opinion (BPO)

A Broker Price Opinion (BPO) is often referred to as a “light” version of an appraisal. It’s performed by a licensed real estate broker rather than an appraiser.

In most cases, BPOs are not used for traditional purchase or refinance loans. You’re more likely to see them when:

• A homeowner is trying to remove mortgage insurance
• A lender is servicing a second-lien mortgage
• An internal bank process requires additional value verification

For example, a bank managing a second lien behind Mortgage Mark’s first lien might order a BPO to verify the property’s value for their own internal checks. It’s not something we order for purchase or refinance loans.

Estimated cost: $150 to $300 depending on the market and provider

A broker price opinion (BPO) is what we call an “appraisal lite” and isn’t done by an Appraiser. BPO aren’t common and are not typically used when buying or refinancing a home. A BPO is most often used for mortgage insurance cancellation on an existing home loan or when getting a stand-alone second lien mortgage. The cost for a BPO ranges from $150 to $300.

Do I Get to Choose My Appraisal Type?

No. The appraisal type is determined by the underwriting system, loan program, property data, and borrower profile. Even as the lender, we don’t control the outcome. The system decides what is required, and we make sure it’s completed correctly.

Government loans like FHA and VA always require a full appraisal. Jumbo loans usually do as well. In contrast, conventional loans in urban areas may allow more flexibility.

Appraisal Requirements in Dallas and North Texas

Dallas, Frisco, McKinney, and the broader DFW area have strong housing data and a high volume of home sales, which increases the chance of appraisal waivers or exterior-only reports—especially for refinances or high down payments.

That said, every home and borrower is different. Our team will review your loan application and let you know what to expect early in the process.

What to Expect Next

At Mortgage Mark, we can walk you through the entire home loan process and mortgage loan process. Whether you’re buying your first home, refinancing, or financing an investment property, we make sure you understand every step—including the appraisal.

We’re based in Dallas, Texas and proudly help homeowners across the entire state and nationwide. Reach out to us with questions about your loan or your property’s value. We’re here to help you make confident, informed decisions.

When you think mortgage, think Mark.