What is a drive-by appraisal and which lenders use them?

A drive-by appraisal relies on an exterior-only inspection: the appraiser views and photographs the property from outside but does not enter the home, drawing on market data and comparable sales for the rest of the analysis. Lenders order these most often for refinancing, where an interior inspection may not be required. The lender, frequently through an appraisal management company, chooses the appraisal type based on the loan program and the property.