Posted by John on February 13, 2005 at 21:41:04:
There are lots of factors that determine whether you can 100%,95%,90% loan to value. Credit score is just one. When you applied for a loan did you specifically ask for 100% loan? Go back to mortgage broker and have him reshop the loan with different lenders. If this is not possible then a letter stating what you qualify for should be enough if you stated 100% financing was a contingency on the purchase contract.
cancellation of a purchase contract - Posted by felisha shabazz
Posted by felisha shabazz on February 12, 2005 at 12:50:53:
I have signed a contract with an agent to buy a home but my lender had misled me by stating in writing that I was approved for $400000 but I couldn’t afford a home costing $365000, unless I put 5% down in which I do not have to put down. I asked my lender to give my agent a letter stating that I have been declined financial fund and they refused, now they are forcing me to buy this home cause I cannot cancel the contract unless my lender gives her that letter. What do I do? I cannot afford the house.So I want to find another home that is cheaper. One I can afford.How do I get my lender to submit this letter?
Re: cancellation of a purchase contract - Posted by JohnBoy
Posted by JohnBoy on February 12, 2005 at 18:31:17:
Have them provide a letter stating you need the 5% down.
What does your contract say about putting anything down? Did it say anything about you agreeing to put anything down? Or was it only subject to you being able to obtain financing?
Your financing sounds like it is based on meeting conditions. Like only being approved for a certain amount which is less than the amount you needed to purchase the property. So a letter stating the amount you only qualify for should be good enough since that amount is not enough to buy the property.
What if the seller dropped the price by 5%? Would your lender do the loan still? If so, then get the seller to drop 5% of the price so you can close the sale. If not, then provide them with whatever amount the lender will loan. That is pretty much the same as having a denial letter for the amount you needed. Unless your contract stated anything about you agreeing to put anything down that would be enough to make up the difference, then it shouldn’t matter. Bottom line. You can’t get approved for the full amount needed which should be enough to get out of the contract, unless the contract says something otherwise.
So just have the lender provide you with whatever it is they will lend you and what they require down from you. Then let the seller decide if they want to reduce the price enough to close the sale or not.
Re: cancellation of a purchase contract - Posted by felisha shabazz
Posted by felisha shabazz on February 13, 2005 at 17:57:55:
I was suppose to receive 100% financing nothing down at all. It was only at the last minute that they ask for me to put 5% down. I think that they are playing me really.
Re: cancellation of a purchase contract - Posted by River City
Posted by River City on February 14, 2005 at 06:46:39:
If your application indicates that you applied for a 100% loan and the lender will not give you the loan on the terms you applied for, then they have to issue to you an Adverse Action (denial) notice. What they have basically done is to issue you a counteroffer. You have not accepted the counteroffer, so the lender is required by the Equal Credit Opportunity Act to issue a denial.
Do a search on the Internet for “Equal Credit Opportunity Act.” Read it because your answers are there.