Hello Ellee,
How did you make out with this? Are you still in contract?
There are a lot of contigencies that protect buyers but every contract is different per state.
Please feel free to contact me LeeStiber@kw.com if you still need advise.
Wish you all the best!

Ellee,
TALK TO YOUR AGENT! Nobody can give you really good solid advice without knowing what your contract says. There are some suggestons we can make, but your best line of defense is your agent. If you have a newer real estate sales person , and are not satisfied with the answers you are getting, ask to talk to their broker. They have a wealth of experience and should be able to asnwser your questions.

I have been a REALTOR for almost 25 years, and have worked with many 1st time homebuyers. 'Last minute jitters' that Terrence refers to, is a common occurance and may be nothing more than the momentary panic that comes from taking a new venture. I caution buyers to think well about their offer BEFORE the contract is signed, because it is a legal binding contract when signed by all parties.

Blessings to you.

Ellee,
You need to examine your copy of the contract. Basically, if you cannot afford the payments then you might not get the financing. There is in the standard offers in NC a clause giving you an out if you cannot obtain financing. The penalty for breach is forfieture of your earnest money for starters. Then of course the seller could come and ask for specific performance which means they would try to force you to buy the home. Have you spoken with your agent about your concerns? I would suggest that first and then have your contract examined by an attorney. I am curious though did you not get pre-qualified with a lender and work out a budget for yourself before looking for a home? You need to work out what you can afford and then stay within that budget. Inform your agent of the maximum you can pay.


Larry Story
Coldwell Banker Triad

Yes, there are penalties if you want to back out of the contract and all parties are not in agreement to end it. This could be the loss of your deposit money as well as other costs which could have been incurred.

If, for instance, the seller was waiting on the sale of this home to get into another one. They have made the deposits for the movers already and/or other arrangements made. Now someone wants to back out, now they lose money, too.

If your agent did not have you talk to a mortgage broker before putting this deal together, then shame on him or her. If you already talked to a mortgage broker and they said you can afford a home worth $x amount and you saw that the payments are cutting it really close to what is budgeted, then you should have talked about a lower price in accordance to the payments you could feasably make.

But sometimes, first time homebuyers get the last minute jitters of actually going through the purchase of their first home. This is normal. If you REALLY can't make the payments, you make need to talk to the agent and his or her broker about withdrawing. They may be able to help you out. But you can't find out unless you ask. Do it quickly before any more time passes.

Terrence Charest