A Tale of Two Lenders!

|June 8, 2017


Robert Merryman - McGuire Partner & Top Producer | San Francisco Real Estate
One thing I have learned the hard way: encourage Buyer clients to have mortgage approvals from two lenders. Why you ask? While the primary lender may have attractive rates and loan products, can they deliver on their promise?

Recently, a client was approved for a home mortgage. After the Seller accepted the Buyer’s offer for $609,000 the lender’s appraisal came back – $59,000 short at $550,000. That was a big surprise since the unit directly next door sold recently for $685,000. The first thought is to challenge the appraisal – never an easy task. The Buyer asks, “what should we do?” I suggest he contact another lender to see if they can help.

LENDER #2 was very accommodating. The Buyer explained the situation and LENDER #2 had the appraisal ordered and the results back on her desk by Monday! Quite impressive! And the appraisal was for the offer price, $609,000! Rates were competitive so the Buyer was inclined to go with LENDER #2.

However, not so fast! Turns out, LENDER #1 re-appraised the property for $600,000 which required the Buyer to come to the close of escrow with an additional $9,000. Here’s the hook: LENDER #1 also adjusted their rates to well below their initial rate quote of 3% to 2.875%.

My client was very thankful I was able to assist in finding another lender. Ultimately, the original lender saved the day and won the deal with their appraisal adjustment and lower interest rates.

The end result: always have an alternative lender at the ready just in case things don’t work out as expected. Couldn’t hurt!


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Robert Merryman

Robert Merryman

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