Actually the RPA for the state of california is very buyer friendly. There are a wide variety of ways for you to back out of the contract however you must do it in a timely manner as specified in the contract. You define those timeframes when you submit the contract.

There are formal contingencies referred to as appraisal, inspection and loan, however within the inspection contingency there is a wide berth for you. You can back out due to any sort of HOA restrictions, you can back out because of certain disclosures made by the seller, you can back out because you dont like the color of the leaves on the trees in the yard.

The reason for backing out is pretty much moot. The timing of when you back out is crucial.

Homes that are subject to multiple bids may send out counter offers asking for the appraisal contingency to be removed. You can remove it and if the appraisal doesn’t come in you can still walk or try to renegotiate PROVIDED YOU HAVE OTHER CONTINGENCIES that have not expired temporally. The thing is that usually the appraisal is one of the last pieces of information that is delivered. So an astute listing agent will look at a contract, note the appraisal contingency has been removed but then ask that all of the other contingencies get pulled in to 10 days so the buyer cannot sneak out of the deal for any other reason.

There are plenty of ways to skin a cat.

There really should be no reason for you to remove the appraisal contingency unless there are several competing offers.

I don’t feel strongly either way about how many lenders you use. You just need to hustle and make sure the lenders submits the order for appraisal to whatever appraisal management company is being used. If you think the appraisal will happen quick, then hold off on the physical inspection until after the appraisal to save some money.

Hmm – lookingtobuy – unless your lender makes some requirement of exclusivity prior to agreeing to a lock you are free to do as you choose. Lenders are big boys and girls and should know how to hedge their bets. There are lots of disappointments in the world – you need to look after your own financial well being.

You are free to do whatever you want to do.
I don’t think that you really do understand where I’m coming from nor do you understand the industry.

I grew up in several industries (not only real estate) where deals are done with handshakes for many thousands of dollars. A commitment is a commitment. I don’t go back on my word.
Trading stocks and bullion, prices move by the second, up or down. I don’t always guess right but I NEVER renege on an agreement.

Your assumption that it’s no big deal to lock a loan and then go elsewhere If rates drop is just a slimy thing to do.

I will be the first one to tell you that there are plenty of slimy, unethical people in the real estate and mortgage industry. Banks and direct lenders have ways of screwing borrowers that people never know about.
The ‘know it alls’ who think that they will always get the best rate by going to a ‘direct lender’ are just ignorant.
Your attitude is I’ll screw them before they screw me.

Mortgage Brokers are regulated and similar to insurance brokers, are compensated based on the loan amount, and any excess credit MUST, MUST be passed along to you. there is no longer any incentive to upsell anything to a borrower, that the slimeballs were allowed to do a few years ago.

A direct lender/bank does not have to play by the same rules as brokers. Their misleading pitches sound wonderful to the foolish.

Mortgage brokers have commitments with wholesale lenders. Locks are a HUGE deal. Fallout is when loans are locked and then not delivered.
I know of a broker who took risks and locked loans for people he didn’t know.
His fallout was too large and lenders stopped doing business with him. *this was not due to just one loan* but he suffered greatly.

I don’t care whether you ever get a quote from me or not, if you want an explanation of how the system/process really works, feel free to contact me.
Most people have no idea how time consuming & complicated the approval/underwriting process is, and intentionally entering into 2 different agreements knowing that you are going to default on one of them with your attitude just speaks to character.
Don’t worry, you aren’t the only one. It’s pervasive throughout society that people don’t want to be responsible and look for ways to ‘beat the system’ and it’s usually over money. Another post has the same attitude as you.

No bank is going to go out of business if you lock a loan and don’t follow through. Deals fall apart all the time. Locking with a broker is a bigger deal to me, not only because of being in the industry, but the way that I was brought up.

Best of luck with your transaction, I hope that it works out for you.

My main concern when I deal with clients is protecting their interest and deposit in a purchase transaction. I would not encourage you to waive standard contingencies unless there was a really, really good reason. What’s their reason ?
Does the seller think that it isn’t going to appraise for what you have agreed to pay ??
(Yes, you still have other ways to get out)

I know of agents whose main concern is how quickly they can get their commission and they give crappy advice and others that will not show buyers a property if it doesn’t offer the highest commission. It’s unethical but it happens.
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You have entered into a legal binding agreement based on info that you received from the parties that you are working with.
A real estate agent or mortgage person should never offer legal advice, although many do.

I make sure that people understand what is negotiable and what isn’t. Try to use a lender that offers a ‘float down’ policy. It can’t hurt.
Not all lenders offer one.

Your appraisal MUST be ordered through each lender as part of the loan process. There are disclosures that must be prepared before appraisal can be ordered, and they must go through a 3rd party company. 7-10 days is USUALLY enough time to allow but there are a million things that can go wrong and delay the process.

Even though you may have agreed to the default 17 day contingencies, it is possible to request an extension prior to or at expiration, but the seller does not have to agree.

If your broker plays a game, I’m sure that they understand their risks.
I would not consider double applications to be normal practice. You are free to do it if you want to.
No lender,bank or broker can force you to proceed with a loan, locked or not.
Nobody is going to go out of business if you don’t proceed with a locked loan.

If you do not proceed, the ONLY charges that you can expect to pay are for appraisal & credit report. You cannot be charged any other application or other fees that I am aware of.
The appraiser wants to be paid for their work, they don’t care if the loan happens or not.

Serious point if you want to double app, is to check with escrow first, they may not be willing to provide the required info to 2 lenders at the same time.
If your broker is dealing with this, then that is their concern.

If it takes longer then expected you request an extension of the appraisal contingency. if the seller says yes no problem. If not then you get your deposit back and everyone walks away.

As I said above, if you have other contingencies to lean on and the home does not appraise then use one of the other contingencies. You do not have to be specific to the seller, there is no obligation. Just make darn sure you do it in the time frame you are alotted per the rpa.

Since you have removed the appraisal contingency then at day 17 or whenever your other contingencies expire you must fish or cut bait whether you have the appraisal number or not.

Your agent should have explained all this to you.