So here is the deal. Back in Feb. me and the wife put down 5k to hold the townhouse while the built it. We went through initial qualifying with only a couple minor issues. We fixed those and are due to close on the 15th of Aug. They are now saying that I'm not making enough money, which I am making the exact same amount as before and with less bills even. anyways, at what point can I get my 5k back? I was told initially that if we can't get financed, we can get it back. But if we choose to not follow through with the house, then we forfit the money. I know I can check the paperwork, but I am at work for the next 10hrs and can't check on it till then. Any help or suggestions are appreicated.
2007-07-27 16:25:19 · 8 answers · asked by navydave1974 2 in Business & Finance ➔ Renting & Real Estate
Here is more info: It is a townhouse if that matters and the only thing that changed was we sold my truck (425 a month) and got a cheaper car loan by 19k at (265 a month) this was approved by the mortgage lender saying it was a good idea to lower my DTI. As far as income, I think this is the bigger issue. I just seperated from the navy and am going to receive disability. I have a letter of indebtness from the VA stating that I will be receiving 890 a month from them. They are basing the approval on that, but we haven't received the monthly payments yet. The letter that the VA sent to the lender says the VA has until FEB. to start paying it and they usually wait till the last second.....So I think this is why they are saying we can't qualify now, because we haven't started receiving this yet. They were told all this at the pre-qual and said it would be ok, now it's not ok.
2007-07-27 16:43:12 · update #1
If they are saying you don't make enough money to handle the payments, then that means that you can't get financed with THEIR lender, which means you should get your $5K back. If you really want to live there, see if you can get qualified by different lender, which means that they keep your $5K until you prove you can't obtain a loan.
2007-07-27 16:33:52 · answer #1 · answered by jjdriskel 3 · 1⤊ 0⤋
If you back out then you forfite your earnest money...if the financing cannot go thru then you get your money back. So just allow the financing to fall thru and you will get your money back...
The confusing part of your story is you are saying you have a close date, but the bank is telling you that you don't make enough money...If you went thru inital qualification and got to the point you put earnest money down there should be no question as to your ablility to pay the mortgage...unless you have charged something else on credit and now your DTI is off from what it was in Feb. That would be the only reason you now don't make enough money...if this is the case, you may not get the earnest money back (your mortgage broker should have told you that if you go out and charge things or buy a new car that it could affect your DTI and affect your ability to be financed).
2007-07-27 23:36:55 · answer #2 · answered by Anonymous · 1⤊ 0⤋
For a home that is being built, they may be tougher with your earnest money deposit and giving it back to you, especially in this market. They only started building the home because you had agreed to buy it. You got approved based on your financial information at the time and you put down 5k for the builder to begin building the home. If you try to back out now, there is a good chance they will try to keep the money. However, you never know unless you ask. Otherwise, if this lender can not get you approved now, then check with another one as there is a good chance another will be able to help you. Good luck.
2007-07-27 23:38:09 · answer #3 · answered by dzwreck 4 · 0⤊ 0⤋
I am having a hard time figuring if you want your money back, or if you want the condo. Basically id you do not qualify for the mortgage as described in the original contract then you get your ernest money back. Apparently at the time of application everything looked OK but for some reason not it doesn't look good. All bets are off and you get your money back. As long as you did nothing to disqualify yourself for the loan you are clean.pp
2007-07-28 00:06:21 · answer #4 · answered by ttpawpaw 7 · 0⤊ 0⤋
You really need to look at your contract.
If financing is questionable, I put in the contract that it is subject to buyer obtaining suitable financing.
My gut tells me you are about to lose $5,000.
2007-07-28 01:52:30 · answer #5 · answered by godged 7 · 0⤊ 0⤋
If my memory serves me right you can get it back if you no longer qualify since you aren't backing out you are being disqualified best bet is to call your realtor.
2007-07-27 23:30:19 · answer #6 · answered by C C 3 · 0⤊ 0⤋
you normally get your money back per contract if you are not able to get financing.
however every state is different, you should read the contract
2007-07-28 00:14:56 · answer #7 · answered by jeanniep 5 · 0⤊ 0⤋
you forfeit your earnest money. that's the price of doing business.
2007-07-27 23:28:14 · answer #8 · answered by KitKat 7 · 0⤊ 1⤋