Backup Lender = Purchase Protection

FUNDED's auction platform locates the best loan for you, but your current lender stays in-process. Maintain that progress, don't cancel that loan.

Our exclusive back-up arrangement protects you from low appraisals, escrow deposit risk, and purchase cancellation.

Never signal that you're "switching lenders." Say you're "creating a backup."

FUNDED Creates a Simultaneous 2nd-Loan Option, at a Lower Cost

Is it really OK to "double-app," and lock-in rates with multiple lenders?
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Yes. This strategy is common for experienced homebuyers, and it's mandatory in new construction / builder sales. Notice how new construction / builders offer an "in-house" lender? That's a double-app! Builders often require a fully underwritten approval with the in-house before signing buyers to a contract. Large corporations minimize their risk, and you should too!

This practice is rarely used in resale, where buyers are without execution support. Until now. The double-app strategy helps you shop for the best mortgage price, and protects you from a low appraisal, which can cancel the purchase. If your credit is pulled within a "45-day window," multiple applications don't degrade your scores. Have your agent let the seller know about the "back-up lender," so they aren't caught off guard. And never say you're "switching lenders." This signals loan trouble and impending turbulence. We guide you closely and facilitate everything. Contact us at 415.763.8090 / support@funded.auction for any particulars.

So I don't have to cancel the original lender I was working with?
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Correct. Don't stop your progress with the current lender. We'll help you keep them active until your first-choice loan is ready to close. FUNDED never interferes or eliminates options; we add value to your progress achieved.

Consumers with insider experience use this "double-app" strategy to create a "back-up lender," especially when a home purchase is at stake. Low appraisals and loan failures are beyond anyone's control. We'll guide you and coordinate everything with both lenders.

Why do I need to protect myself from low appraisals?
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The appraisal report value can dictate whether your home purchase is completed or not. If the appraised value is lower than the sales price, you could be forced into making a larger down payment or cancelling the sale.

Example: If you’re under contract for a $1M sales price with 20% down, you're expecting a $200,000 down payment and an $800,000 loan (80% LTV). If the appraised value comes in low at $940,000 your max loan would be $752,000 (80% LTV), and your down payment would be increased from $200,000 to $248,000.

Appraisal values are subjective, so a lower value doesn't necessarily mean you're overpaying for the home. Appraisers can have different values for the same home at the same time; it's a matter of chance. That's why "double-apping" for a backup lender is always a good idea.

The back-up lender is asking for me to sign an "Intent to Proceed" (ITP) disclosure. Is this form binding in any way? And will both lenders charge for an appraisal?
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The "Intent to Proceed" disclosure has no binding force, so it's harmless to sign it and back out after. The only time you may be obligated on a mortgage is when you've signed a closing package with a notary public. If you've only signed the "ITP," you're free to designate that loan as a backup and target other loans with better rates. The ITP protects consumers by allowing lenders to preserve the terms of a locked loan and requires the lender to keep your application open.

A signed ITP also authorizes the lender to collect a fee for the appraisal inspection. Lenders generally charge an upfront appraisal fee, and it's typically non-refundable once the appraiser visits the home. So on their backup loan, borrowers can hold off on the appraisal in order to prevent unnecessary costs. For lenders who don't charge an upfront appraisal fee, or for loans that have the appraisal waived, the concern for unused appraisal fees doesn't apply. FUNDED will closely guide you through best practices, so you get the best result and protection.

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