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While there is nothing like the title of an epic Clint Eastwood movie to tie together one of the more controversial practices in the mortgage lending industry, I will spare you my attempts to match the movie’s plot up against the process of making a “double-app” with your lender or a different lender.

For many of you, this might be the first time you are even learning of this jargon. If so, here are a few things to consider when evaluating whether or not it is the right thing for you to do.

First you need to know that a “double-app” can occur either internally with your lender or externally outside of your lender. Basically, it’s the process of submitting your application to more than one financing source at the same time.

An internal “double-app” is when your lender, who is either acting as a mortgage broker or even a mortgage banker for that matter, decides to fully submit your entire file to multiple investors behind the scenes on your behalf.

Alternatively, an external “double-app” is when you choose to apply with several different banks or mortgage professionals in your quest for a home loan.

Most of the time, the internal “double-app” is a controlled exercise carefully orchestrated by your mortgage professional. In the event that your application has too many, let’s say, dents or scratches on it, your lender might make the decision to share it with more than one of their internal investor sources to determine the best place to finish your approval process.

Whereas externally you may make the decision to apply with a couple of different lenders to gain the extra comfort or security that your challenging purchase loan won’t be declined or your construction financing will ultimately pan out.

However, when there are multiple applications going on, internally or externally, there are likely increased costs and fees for doing such. You might have to pay for different property appraisals, interest rates, credit reports, inspections or even application fees.

In addition, you will probably incur a spike in your stress level as you must juggle the different application process requirements from one lender to the next. If not handled with proper care and guidance, it could turn out to be a financially expensive exercise for you or your lender.

Worse yet are some of the things that could go wrong. One of the major mistakes is not disclosing that a “double-app” has been made until very late in the approval process cycle. In today’s lending environment, there are numerous ways that a lender can check or confirm that a “double-app” has been executed.

If you or your lender fail to disclose your strategy upfront to the different lenders involved, your reputation may take a major hit as an undisclosed “double-app” can be perceived as a dishonest and sneaky thing to do. In conclusion, proceed with high caution and follow the standard rules of professional conduct if you engage in the practice of “double-apping.”

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Chris Salese can be reached at or 707 363-4439. He is a licensed California mortgage banker (NMLS 254469/1850 CA BRE 01377933/01215943) and equal housing lender.


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