Updated almost 10 years ago on . Most recent reply
Second Appraisal - Shopping for Loan?
I'm a newbie to real estate investing and the forums, so I hope I'm following the rules...
I've got a contract on a single family home that was a flip. Sellers purchased it in July of this year, completely remodeled. Our contract price is much higher than the previous tax assessment.
We're doing a 30-year conventional loan with 20% down. They're doing a 4.125% rate with 2.125 points.
Our lender just told me that we're likely going to need a second appraisal because of the property's history, even though that wasn't in the fee estimate to begin with. Now I'm questioning my choice of lender, since this one was already a bit high on fees.
Does it sound normal to require a second appraisal for a conventional loan? Am I crazy to think that the lender should pay for it?
Is there a better place to take this loan?
Thanks!
Most Popular Reply
Unless they are giving yout a considerable amount of lender credit for the points they are charging you for an already above par interest rate (based on great credit, 20% down and 30 year loan), you are being taken. As Upen mentions, there are limited instances when the guidelines call for 2 appraisals. I do not believe this transaction fits that box, based on your information. I'd either call BS with the current lender and tell them to get their numbers in line, or I would extend the contract and get a new lender. If either of those don't happen, I'm walking.