I am shopping around for a cash out refi on a rental property and have a couple of very good prospects. Conventional loan, excellent credit and reserves, nothing owed on the property and the property is seasoned. One of the mortgage companies has approved me, subject of course to an appraisal. They want me to sign something that lets them start the title search. Is that customary? I mean, I'm not sure if I want to go with this lender yet, as I'm still waiting for the conditional approval from another lender who might come with better terms. If I let the first lender start the title search am I bound to go through with the mortgage with this lender? The broker that I am talking to says that this is standard.
Let's say it is standard and it doesn't bind me to go forward. Should I feel bad if the lender spends the money on the title search and I don't use them? Thanks!
