Reducing Risk of Losing Appraisal Fees on Bank Loan Applications

[Steven Jones]

Hello BP,

I'm looking to do a cashout finance for a duplex and single-family home. Both properties are owned through two separate LLCs. I was recently working with a bank that came very close to approving my loan but at the last moment decided to decline my application. (It's still unclear why the loan was declined, but that's a different post.)

The problem: I had already paid about $1,300.00 total for the appraisals, which was non-refundable.

The question: What are some strategies for reducing the risk of wasting the appraisal fees? I'm in the process of restarting the application process with another bank, but they won't allow me to use the old appraisal since: (1) it's been over 60 days since the last appraisals were done and, (2) the company that did the first appraisals is not approved by the current bank?

Some ideas I'm considering:

1. Apply to about 3 or 4 banks simultaneously and get them to all agree to use the same appraiser. I'm not sure if this is realistic.

2. Get each of the 3 or 4 banks to agree to use an appraisal executed by a company that is not on their list of approved appraisers, as long as it's submitted to them within a specified time frame, for example, 45 days.

3. Negotiate with banks to include the cost of the appraisal in the cost of the loan.

4. Ask the bank to pay for the appraisal (wishful thinking maybe, but it should cost much to ask).

Your help. Does anyone have additional ideas? Or maybe, can anyone expound on any of the ideas listed above, in terms of how to increase the likelihood of success?

I deeply appreciate any input.