QUOTE (investmart @ Dec 19 2007, 06:08 PM) Then in case one says no, you can still purchase the property by working with the other bank. Is it a common practice in real estate investments? what if both banks say yes, is it legal/ethical to say no to one of the them once the application process has started with both? The reason I`m asking is if you only contact one bank and they say no to the mortgage application you may not have enough time to get an approval from another bank and thereforee may lose an amazing property/deal(?) Your thoughts on the topic would be appreciated.. THANKS
In a sense, this is what a mortgage broker does for you...so you don`t have to do the work...they will shop the deal for you...the want to place the deal, of course, because if they don`t, they don`t get paid!
Having said that, in our commercial deals we deal with the institutions and the decision makers directly...when I buy a new property I may run it by a couple of lenders to see what their flavour is...if I think the Credit Union will do it then I don`t call the private guy...but it is nice knowing the private guy is there when I need him!