Bank changed their terms after getting an appraisal

[Sachin Bhat]

Hello bp family,

I have a duplex that is completely rehabbed and ready for rental, I wanted to take my equity out so I can purchase more rentals. So, I contacted one of the private bank and they gave me their terms. Since it wasn't conventional loan their fees and rate etc are little high. But I was ok with it. I filled up the application, sent the necessary docs that they requested and paid $585 to get the appraisal done. With in a week appraisal came in and its was higher that what I was anticipating. They pulled my credit score that is also better that what I told them. Then I get an email from the lender saying they wont be able honer the initial terms and here are the new terms. If you want to move forward let us know. I am little upset as if I knew about their new terms I wouldn't have paid for the appraisal. Is this something they are allowed to do? Since they weren't up front with me on the actual terms until I paid for the appraisal should I ask to refund the appraisal fee? I told them I am little upset up I would still want to move forward with cash out refi. Now they need second appraisal. Does anyone had similar experience with any lenders?

Bank name: Lima One

ARV I told them is 130K. Appraisal came in at 150K

My Fico I told them 740. They ran my credit and its 797. So I don't really get why they are making it difficult. I understand its Covid19 situation but they also charging 12 months of PITI upfront. So they are minimizing the risk considerably. What do you guys think. Thanks in advance.

[Russell Brazil]

Maybe you arnt familiar with whats going on in the country with the Covid19 crisis?  Loan terms have been changing hourly.