Secure Your Purchase with a Backup Lender
FUNDED's auction platform helps you find the best loan while keeping your current lender on track. No need to cancel your existing loan.
Our exclusive backup plan safeguards you from low appraisals, escrow risks, and purchase cancellations.
FUNDED creates a simultaneous 2nd loan option, at a lower cost.
Is it OK to apply with multiple lenders and lock in rates?
Yes! This is a common strategy for savvy homebuyers, especially in new construction. Builders often require approval from their in-house lender before signing contracts – that’s a double-app! It helps you shop for the best mortgage and protects you from issues like low appraisals, which can cancel a purchase. Pulling your credit within a 45-day window won’t hurt your score. Just make sure your agent informs the seller about your back-up lender, but avoid mentioning switching lenders to prevent concerns. We’ll guide you through it all. Contact us at 415.763.8090 or support@funded.auction for details.
Why do I need protection from low appraisals?
A low appraisal can affect whether your home purchase goes through. If the appraised value is less than the sale price, you might have to increase your down payment or cancel the sale.
For example, if you’re buying a home for $1M with 20% down, you expect to pay $200k down and get an $800k loan (80% LTV). But if the home appraises at $940k, your max loan would be $752k (80% LTV), raising your down payment to $248k.
Since appraisals are subjective, values can vary. That’s why having a backup lender with a double application can protect you.
So I don’t have to cancel the original lender?
Correct! Keep working with your current lender. We’ll help you maintain that option until your preferred loan is ready to close. FUNDED doesn’t interfere or limit your choices; we add value to what you’ve already achieved.
Experienced buyers often use this double-app strategy to have a back-up lender, especially in case of low appraisals or loan issues. We’ll guide you through the process and coordinate with both lenders.
The backup lender is asking me to sign an Intent to Proceed (ITP) form. Is it binding? Will both lenders charge for an appraisal?
The ITP form is not binding, so it’s safe to sign and back out later if needed. You're only obligated on a mortgage once you've signed the closing documents. Signing the ITP allows you to keep that loan as a backup while exploring other options with better rates. It also helps preserve your locked loan terms and keeps your application open.
However, signing the ITP does allow the lender to charge an appraisal fee, which is usually non-refundable once the appraiser visits the home. You can delay the appraisal on your backup loan to avoid extra costs. If the lender doesn't charge upfront or waives the appraisal, this won't be an issue. FUNDED will guide you through the process to ensure the best outcome.
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