Ok so we haven't heard from the realtor. ...
We are in the process of applying for a usda direct loan. We were told we were selected for processing, and submitted everything that was asked of us. We were in touch with the LO and have gotten positive feedback so far. He is putting everything together to go to his boss. We have been working on this since early January.
We found a home that we fell in love with, and put an offer on it contingent upon financing for the lowest amount we were told we would qualify for, which is $25,000 less than the asking price.
The realtor called and said the seller would like a pre approval letter because there are other offers on the table, and the seller would like to know they aren't wasting their time negotiating with us. I called and asked for one, without saying we submitted the offer. The LO told me he didn't have a number for me yet, and was still working on it. I didn't want to upset him so I left it alone, said thank you and hung up.
I really want to go a little higher with the offer, as the seller asked us for $15, 000 more than what we submitted. I told the realtor who by the way is a dual agent for the property, and us that I wanted to give her another offer, but because of not knowing what our max was I couldn't move for another few days, and hoped that the seller would understand our position. The realtor said, well it is an estate property between family and they really want to just sell it, but would at the same time like to see a family get it. I maintained my position. The other offers and ours is due for an answer tomorrow at the close of business.
If the seller chooses us, is there still room for negotiation, or do they have to take the original offer?
I don't know what any of this means, with all the offers and whatever, but I would like to re counter their offer to be more fair to them, the house is perfect!
Should I call the LO tomorrow and just say look we found the house, we submitted an offer and see where it goes from there?
Would this maybe ruin our chances, like did we do something wrong by making an offer?
I am so confused!! I am not trying to deceive anyone, I thought I was doing the right thing, now I just feel like I did something wrong, and will be punished by having the whole thing taken away.
I really thought most people find a house, submit an offer, and then do all the financing?
Please someone tell me what we should do? Please! This is an emergency. Thank you! 
I got the call yesterday. Someone went in with a cash offer, so the house is gone. 
The LO is working on getting us a certificate, promise to lend.
The house is gone now, so I don't have the anxiety anymore. It was the strangest thing, as soon as the agent said I am sorry your offer is off the table, I felt like a weight was lifted, but it was replaced by so much sadness I felt like my heart was breaking. I sent a text out to some family and friends, and they were all very supportive, and made it hurt a little less. I started looking for a new house, but can't find a comparable. My dad was right I have a huge hole in my foot, and it won't heal for a while
but Thanks everyone here for talking me through this stuff. I am sure I will be back, when I find another "the one"
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