Please see my blog with advice and tips on getting a loan in todays market
Great question. I don't see a reason to put no appraisal contingency into the contract, especially if the value comes in under your purchase price and opens up room for re-negotiations - You could then have the price lowered. If you're concerned about the property appraising or that one of the lenders will come through for you, having two lenders may be a good option to consider. Keep in mind that this will be considerable work for both of the lenders, one of which will not be getting the business, so I recommend to be as up front and accomodating as possible to both lenders if you choose this route.
If you need any help or suggestions of a couple great lenders I would highly recommend let me know.
Keller Williams Realty
There are a few problems with your idea. First one is that you will have a problem finding a lender to work for you in a back up position to another lender. It just makes no sense. We also have pull through ratios with our investors we must adhere to.
What is your issue that would make you think you need two lenders. If our primary lender turns you down, we would simply transfer your appraisal to a different lender. its not an issue any more as HVCC appraisals are portable.
It would be if you chose a big bank though. Just pick a broker with plenty of experience and you should not have as issue
20 year mortgage broker
United Capital Mortgage
It's always a good idea to have a back-up loan, especially from a recommended lender that your agent has completed many successful transactions with. If you go the full course with both lenders, then you will have to pay for 2 separate appraisals, but consider the extra cost as an insurance premium. (I've even had buyers who have signed loan docs w/ each lender b4 deciding on which one to use.) You must ask each lender if any addt'l costs will incur (ie) application fee, credit check, etc. I have a wonderful loan officer w/ a direct lender who backs-up all of my buyers at no additional cost (except the appraisal fee):
Steve Masuta / Propsect Mortgage / (818) 742-3217 / email@example.com
The length of escrow is an item to be negotiated b/w you and the seller and most DIRECT LENDERS can close loans b/w 30-45 days (depending on the type of loan). I never advise my clients to waive their appraisal contingency, esp in this market.
SUZANNE (SUZIE) GLASER
LA VILLAGE REALTY
p.310.383.1141 | http://www.LAVillageRealty.com
RealEstateSuz@gmail.com | lic # 01390707
(a division of Power Brokers Int'l | lic # 01520327)
A buyer CAN shop around for a mortgage, whichever company is offering the best terms & interest rate, but it is not necessary for a buyer to order 2 appraisals.
It is Highly unlikely in this market that a buyer is ultimately going to shell out cash to pay MORE than the appraised value.
If I didn't quite answer your question, feel free to shoot me an email directly, I won't look for answers on Trulia regarding this question.