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if you were not approved for a loan can you get your earnest money back

by mebaby_2007239 from , California. May 31st 2016 Reply


Hans Bruhner (Hans Bruhner)
#129 ranked lender in California - 106 contributions

If you are within the loan contingency time frames set forth on your contract then yes you should get your earnest money deposit back. You will want to make sure that you do everything in writing and on time.In 27 years in this business I have only seen 2 people lose their earnest money deposit and both of those were justified. They had both removed all contingencies and then just backed out of the deal at the last minute. I have even seen several times where the seller could have kept the deposit but didn't because it was not the buyers fault.

May 31st 2016
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,414 contributions

More than likely, yes.. most Realtor contracts have a contingency clause that says your earnest money is to be refunded if you cannot obtain financing.. The only way you wouldn't get the EM back is if you waived this clause (unlikely).. Ask your realtor, but you should get it back.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

May 31st 2016
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Larry Gray (lgray_312_247)
#594 ranked lender in California - 1,139 contributions

As per the answers to your question already, the contingency is the key. I have repeatedly been asked if it would be ok to lift contingencies because of 10 days having gone by since the initial sales contract was signed by both parties. For reasons, uncontrollable, sometimes the time period goes a little longer. I always recommend not lifting the contingencies until appraisal and everything has been reviewed by the Underwriter, and borrowers have had a chance to negotiate anything, if necessary. it is pretty rare for a seller to pull out because the buyers did not lift the contingency, wherein both appraisal and borrower documentation evaluation is essential, by 10 days. However, they could pull out if they wanted to at that point and you would get your earnest money back.

May 31st 2016
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