topic Re: Just got pre-approved!! in Mortgage Loans

Just got pre-approved!!

ineedahome — Fri, 16 Apr 2010 22:00:00 GMT

Me and my girlfriend have been trying to buy a house for the last few months. 2 months ago, i got denied because my credit was bad. My girlfriend however, got approved herself for 80k, which wasnt enough to buy a house where im at. Anyways, in 2 months i raised my credit from a 528 to over a 620 and we finally got approved for over 140k. We found a house in about 4 days and the seller just agreed and signed the contract! We're both very excited.. I guess the only things that can go wrong from here until closing is us not passing the underwriter or the house fails inspection. (house was built in 2003 and had an inspection and repairs done last year)

Re: Just got pre-approved!!

DallasLoanGuy — Fri, 16 Apr 2010 22:11:19 GMT

congrats!!

Re: Just got pre-approved!!

ineedahome — Fri, 16 Apr 2010 22:15:12 GMT

The only thing i am worried about is failing the underwriting process. My lender says there wont be a problem, but im still worried.

If I did get denied, would my earnest check be refunded?

Re: Just got pre-approved!!

Lel — Fri, 16 Apr 2010 22:19:57 GMT

Did you include a financing contingency in your purchase offer?

Re: Just got pre-approved!!

ineedahome — Fri, 16 Apr 2010 22:24:18 GMT

I have no idea, this is all very new to me. Hope im not out a 1000 dollars if we dont get the UW pass

Re: Just got pre-approved!!

Lel — Fri, 16 Apr 2010 22:41:57 GMT

Well, I hope your real estate agent was looking out for you and included this in your contract.

I strongly recommend that you review your purchase contract in detail. Make sure you understand everything that it says. Ideally, this should have been done before you signed the contract, but that's water under the bridge now.

A financing contingency is an escape clause that states that if you are unable to get approved for your loan, then you are entitled to a refund of your earnest money deposit. Many contract forms have the option to include this provision, but it needs to be specifically checked in order for it to be active.