Your lender is passing along an appraisal waiver the automated underwriting system offered, and accepting it usually saves you both money and time. Appraisal waivers exist only on conventional loans. Fannie Mae calls it value acceptance and Freddie Mac calls it ACE, and the automated system decides once you have a specific property and a signed contract, granting one only when its confidence in the property and loan data is high. You cannot elect one yourself, and FHA, VA, and USDA purchases have no equivalent. Both agencies have expanded when their systems will offer a waiver, and in some cases one can show up with a fairly low down payment, though the exact thresholds change, so confirm current guidelines when you are in a live deal. If a waiver is offered, taking it means no appraisal fee and no waiting on an appraiser's schedule. One thing to hold your lender to: if you accepted a waiver, you should never be charged for an appraisal that was never ordered. A waiver is a good sign on its own. The data on your property and loan was strong enough that the system did not require a full appraisal to support the value.