Laurajo, Home Buyer in Saint Petersburg, FL

My question really is, once the bank gives you a verbal approval on your offer can they still come back and

Asked by Laurajo, Saint Petersburg, FL Tue Dec 16, 2008

change their mind?

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Answers

7
Hi Laurajo,

The answers that follow mine are all right--sad as it may sound. And in the present economy, don't be surprised to see the banks which give written approvals may also find themselves in financial difficulties and not be able to perform. EVEN IF THEY HAVE PROMISED YOU THE WORLD IN WRITING. Your best bet is to find a BIG bank or lender, which would be likely to still be in business when you are ready to buy/close on your new home. I'm thinking BoA, Chase or the like.
Dane
0 votes Thank Flag Link Wed Dec 17, 2008
Laurajo,

Yes, they can change their mind and they do......until you have everything signed and delivered, you really have nothing.
0 votes Thank Flag Link Wed Dec 17, 2008
Until it is in writing you really have nothing to go by
verbal is not enforcable
0 votes Thank Flag Link Wed Dec 17, 2008
Verbal offers are worthless and in today's environment, to assure you will be able to obtan the financing; ask for a preapproval. Give yourself five days to get all the information requested to document your file and then ask for a credit approval that has been underwritten. Request that you are given an approval in writing with any conditions that will be required, obviously an acceptable appraisal will be required.

Today's lending environment has gotten extremely tight and the automated underwriting along with the waivers that came with them are no longer holding weight with underwriters.
0 votes Thank Flag Link Tue Dec 16, 2008
As they say..."Verbal offers are not worth the paper that they are written on"
0 votes Thank Flag Link Tue Dec 16, 2008
From legal point of view: Verbal means nothing and in that case yes they would have right to come back and say that they never approved this contract and you would not ave any recourse because there wold be nothing in writing. You really want the approval of the contract to be in writing so there is no confusion.
0 votes Thank Flag Link Tue Dec 16, 2008
Yes-You are not in a legally binding contract until all contracts and addendas are signed by both parties.
0 votes Thank Flag Link Tue Dec 16, 2008
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