Situation: Pam had her old house under contract and was buying a much pricier house in Biltmore Forest. The contract price of the new home was 1.8 million and she wanted a 75% LTV loan. The money down would come from the sale of her old house.

Problem: There was no problem with the qualifications of the borrowers, but loans above a million typically need to be signed off by two underwriters. Also it is common to justify the value of the property with two appraisals on loans over 1 mil. Two appraisals were ordered, one from a local appraiser and one from Landsafe – a large national appraisal firm with negotiated rep and warrant agreements with most institutional lenders. The loan went through underwriting with not one condition on the borrowers. The appraisal was another issue! More Here!