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I put 1000 deposit for a new house, but 3 weeks before the closing day, the lender said the mortgage rate become higher so made the monthly payment become higher than what we can afford. Can I get my deposit back? by cessha693 from San Francisco, California. 8 days ago Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,486 contributions

You should read your contract, but most sales contracts state that you purchase is subject to obtaining financing.. if the financing falls through, then that is a contractual reason to cancel the sale.. and you would be entitle to receive your earnest money back. Ask your real estate agent.. this is something they deal with all the time.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

5 days ago
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Thank you William for answering my question. Can I ask you further detail about it, the first time I talked to the lender, he mentioned that the monthly payment will be 2700/months, and I thought we already lock the rate and give them all the paperwork they needed. But 3 weeks before the closing time, we found out that the monthly payment change become 2900/months, I told him, I cannot afford it, then the sales manager of the homes told me he will try to find other lender as long as I agree with 2700, I agreed. The next day he told me he cannot find one, all of them will be ranged around 2900/month. With this condition, can I ask my deposit back? because they told me I backed out from purchasing the house and did not reply my phone after that. Thank you.

5 days ago
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,486 contributions

I'm still confused.. and there's way too much missing details to say for sure.. Is this a New Build or a resale home? He said your rate was locked,,, did he tell you on the phone, or did he send you something? Email, voicemail, etc.. If it's a new build, then almost always, you are subject to their contract... (vs. a contract used by most real estate agents) the builders contracts are most always one sided (in favor of the builder).. this is why I said first to read your contract.. specifically, whether or not your loan was subject to financing.. Also, you said they wont refund you the money because "you" withdrew? Did you withdraw? Did you tell them on the phone? or in an email? voicemail? Also, who is holding your earnest money? The builder? A title company? If its the title company, then you might have a shot at getting your funds back since the title company is a neutral 3rd party.. they will decipher the contract and situation and make a determination based on their opinion.. But if it's the builder, then you might have to file an action in small claims.. If you want to call or email me to make this conversation private.. my number is below.. my email is wacres@lend.us. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

5 days ago
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