Take a higher deposit if you want to rent to them would be my recommendation

Lastly, it could be that the bank is going to portfolio your loan at below-market pricing because they want the entire banking relationship (deposits, transaction processing, consumer lending, etc) or simply want the risk (yield).Lots of local and regional banks have been retaining loans at really aggressive pricing recently as the current environment makes this favorable for them.

I'd immediately go to a higher deposit, several months paid up front, etc. 

I would be looking for a deal right now where you gain $100k to $300k instant equity and cashflows. 

My realtor/PM says $0.95 to $1.05 per sq. ft. is a reasonable monthly rent for a 4 BR/2 BA property in that area, which (according to the BiggerPockets calculator estimate I did) is enough to cover the monthly payment plus the above costs I mentioned.I anticipate putting down my deposit and earnest money in the next few days. 

Nothing herein is legal advice.Effective July 1, 2024, California Civil Code section 1950.5 generally prohibits a landlord from collecting more than one month’s rent as security deposit, whether the rental is furnished or not.

The vast majority of the population, anywhere in the world, prefers the instant dopamine hit to the slow morphine drip.

The seller could simply retain the deposit.

They're offering the full asking price with a $1k escrow deposit, and they're also requesting $10k for closing costs.

Stayfi enables me to see the current uptime status and answer about half of the issues instantly.