Lender deposit and Financial Contingency

[shamrock847]

You should always have a financing contingency. Often it is the last one to get cleared since these days lenders often don't get to final approval of the loan until a day or two before closing.

[Margery]

Originally Posted by RamblingMan

vauser,
I'm not sure where you're going with this. If a loan doesn't go through, it isn't normally a big deal --unless you don't have a loan contingency. If that is the case, you face losing your earnest money.

Even if you're getting a rebate, your agent is supposed to help you understand the process and make sure that you're interests are represented. If I were you, I'd ask my agent for help to find financing. If having the second W2 is really a problem, maybe your agent can also help you negotiate having the closing date pushed back. (Why is the date "approximate?" It should be spelled out in your contract). If you can't get financing, there might be other contingencies in your contract that can give you an opportunity to get out without losing your earnest money, but you and your agent will have to discuss those.

I am not sure where he/she is going with this either. It appears that the home is under construction with an approximate closing date of May, 2012 and a contract has already been ratified. If financing is not approved when it comes time for settlement the deposit is lost if there is no financing contingency, and vauser says there is none. We are wasting time advising there should be a financing contingency when the contract is already ratified and does not have a financing contingency. That horse has left the barn.

The best bet is to use the time remaining to find a lender that will work with you. As a self employed person you will need 2 years tax returns (which you will have). If you are in the same line of work this is a plus. You should also be able to show income to date from January 2012 to May 202 that is consistent with 2011 income. I am assuming your credit is good. You have plenty of time to find a lender, check with the bank you are currently using for your personal accounts.

The best time to figure how to get out of a contract is before you sign the contract, not after it is ratified.

[vauser]

Originally Posted by Margery

I am not sure where he/she is going with this either. It appears that the home is under construction with an approximate closing date of May, 2012 and a contract has already been ratified. If financing is not approved when it comes time for settlement the deposit is lost if there is no financing contingency, and vauser says there is none. We are wasting time advising there should be a financing contingency when the contract is already ratified and does not have a financing contingency. That horse has left the barn.

The best bet is to use the time remaining to find a lender that will work with you. As a self employed person you will need 2 years tax returns (which you will have). If you are in the same line of work this is a plus. You should also be able to show income to date from January 2012 to May 202 that is consistent with 2011 income. I am assuming your credit is good. You have plenty of time to find a lender, check with the bank you are currently using for your personal accounts.

The best time to figure how to get out of a contract is before you sign the contract, not after it is ratified.

There is no ratified contract yet (I don't remember mentioning it anywhere). Which is why I have 3 days (now, 1 left) before which I need to make a decision or pull the plug and withdraw the contract. So, there is still time!

[ACWhite]

Originally Posted by vauser

There is no ratified contract yet (I don't remember mentioning it anywhere). Which is why I have 3 days (now, 1 left) before which I need to make a decision or pull the plug and withdraw the contract. So, there is still time!

I think several of us were confused by this part of your original post:

"but since my contract is NOT contingent on financing"

That phrase implies that you do have a contract and you did not put a financing contingency in it.

Do you mean that you have submitted an offer (without a contingency) but that you are still in your 3 day rescission period? If so, I think everyone here is urging you to withdraw it if you failed to put an obtaining-financing (not obtaining pre-approval, or something else that could fall through) contingency in it. You can resubmit it with the contingency.