Multiple loans in underwriting? HELP

[Anonymous]

Is it bad to have 2 separate loans in the underwriting process, with 2 separate LOs? How close to closing do you have to decide which company to go with? Do you just tell the one you don't want that you're going with a different lender? This is for FHA. 

[JVille]

Curious why you have done this? Do you have a signed Purchase agreement and a firm closing date? Only 1 FHA case # on a property can be issued. So if you have only doing a prequalification you can pick either but if you have an actual deal then which ever lender gets a FHA Case # First will be the only lender who can order the FHA appraisal. Did you pay two different lenders for an appraisal?

[kc0039]

Yes. Just tell one that you want to go with a different lender. Besides how can they underwrite and order appraisal when they're allowed only 1 FHA Case number. That will send red flags all over the place between the two lenders.

[Anonymous]

I think you should let the one you are not going with know now.  This involves time and put yourself in the lender's shoes.  Don't wait till it gets to closing before deciding.

[JVille]

It can’t get to closing because with FHA an address can only have one Case # in order to Order an Appraisal. The real issue is the lender the OP may actually not want to use may apply for a FHA Case # first and then they are stuck.

So there is NO WAY Both FHA loans can get past the appraisal stage due to the Case #.

Maybe the OP is just doing a PreApproval and has not found a property yet.