Working with 2 lenders simultaneously - appraisal uncertainty?
Hi BP,
We are currently under contract for an ocean property for a vacation house with more than 10 acres of land (where we'll build another main house). Working with a lender who says we should be able to finance it as conventional, given intent to build 2nd home, but not 100% certain until the appraisal. The alternative would be a land loan which would result in much more down payment.
I always shop around for rates and have 2 lenders in process right now, awaiting a match for the rate. Both lenders already ordered an appraisal upfront, which might be the local practice given it takes a while and we have a tight closing window. But regardless of which lender we choose based on rate, should we let the other appraisal and application keep going just to have a backup given the uncertain appraisal situation?
If one appraisal somehow disqualifies it as a conventional loan, it would be nice to have the other as a back-up to still have a shot at closing on time, no?
Anything wrong with this plan?