The townhouse seems to make more sense for my family. The price is low enough on it that we could get a 30 year fixed at 5.625 versus the 35 year interest only at 6.25 that we have to take on the house to qualify for one of our loans. Also we are taking a loan out for the closing costs, which is deferred for 5 years. But the townhouse owner will pay all closing costs. So on the house, in 5 years our payment will go up about $450/month.
The townhouse has 2 1/2 baths, versus the house with only 1. It also has a 2 car attached garage, the house has NO garage. The townhouse has more square footage and a loft for an office. There is also a swimming pool at the townhouse. The HOA's are low, and we wouldn't have to worry about the outside at all. They are both in the same great school district.
Can I back out of the deal on the house at this point? Is there reasons why I shouldn't? I will lose my good faith deposit, but I am ok with that since I will save so much on the townhouse
2007-03-28 00:56:13 · 5 answers · asked by Ang 1 in Business & Finance ➔ Renting & Real Estate
I should mention, that we only have verbal approval on the final loan, and are still waiting for written approval. I have signed so many papers, but I can't sign the final papers until we have written approval and funds for the final loan.
2007-03-28 01:19:44 · update #1
Once you sign a contract to buy a house, you are obligated to fulfill the contract. You can try to get out of it, call your Realtor. If they do release you from the contract, you may lose any and all money that you put down. And you could be sued for breaching the contract... Sorry but you really should make sure what you want BEFORE signing any contract.
2007-03-28 01:00:49 · answer #1 · answered by capnemo 5 · 1⤊ 0⤋
I would just let escrow close if the loan comes through and immediately put the house back on the market. In the meantime, you can put an offer on the townhouse contingent on the sale of the house. I would discuss this matter with an attorney first, then a realtor.
2007-03-28 02:53:59 · answer #2 · answered by pepper 6 · 0⤊ 0⤋
You have 3 working days to back out of the contract.
2007-03-28 01:06:04 · answer #3 · answered by Patricia S 6 · 0⤊ 0⤋
Hope that your loan doesnt go through.
If you do back out, you can lose any earnest money, and the realtors can sue you for failure to compensate them, for their performance.
If you are prepared to pay all these costs, back out.
2007-03-28 02:39:35 · answer #4 · answered by burga kiiong nocca 2 · 0⤊ 0⤋
It is too late. Once you're in escrow you cannot pull out. It's illegal.
2007-03-28 00:59:07 · answer #5 · answered by madbaldscotsman 6 · 0⤊ 0⤋