Asking 2 Banks for Financing

[Bill Smith]

Hi.  I am about to ask for financing for a 14 unit apartment.  Is it ethical to ask 2 banks to do the underwriting and then just use one of them? I'm nervous one will deny it. Do I need to tell both of the banks that I am also working with another bank?  This is my first purchase.  Thank you.

[Jeff Shumway]

Nothing legally stops you from doing that but... why? Financing a property isn't just a matter of clicking the button to dispense money. The entire team at a bank works for weeks on end to make sure you meet your closing date. There's a lot that goes into it- not to mention most loan officers work on commission so whichever bank doesn't get the deal will likely have been depending on the paycheck they thought they were going to get. 

I would recommend sticking with one bank that you're confident will get the deal done. Also if you have two banks work the deal, you'll likely have to pay for two appraisals. Plus banks run so many credit checks, they will know that you at least had a credit inquiry with another bank.