I believe that in NY you make an offer with a "binder" before going to contract. The time between the binder and contract should allow you to find an attorney and to get a pre qualification for the loan. Should you go to contract before you get loan approval the attorney would/should protect your deposit in the contract. You'll want to make sure that happens of course. I practice real estate and I'm also a mortgage broker in South Florida. I think that you would be better served by a reputable mortgage broker than you would a bank. Banks can be very unforgiving of any qusetionable credit and may not be as accomodating as possibly FHA or mortgage lenders with various programs to offer. You may want to research some conventional guidelines yourself by visiting http://www.fanniemae.com and looking at some of the available mortgage programs. banks don't always use all of the Fannie Mae criteria and normally set thier own rules.
Typically from the sound of your financial situation, it would be just a higher interest rate, but you should still be able to get financing.
I feel it can be worse on the buyer if they can qualify for a loan, but not the amount needed to buy the house they're already in love with!
It's in everyone's best interest to keep things going smoothly. Also, keep in mind that there are a lot of banks out there. Feel free to find another or a good mortgage broker, if this bank is giving you a hard time.
His scores are good (682 or 670 at lowest) and salary is good, I just wonder about the pulling out process...at first the bank was really happy to work with us (because of his scores) and is now asking all these little questions that lead us to believe they spoke to soon when they were so sure.
Or maybe being cautious is just part of it and she will still be ok when all is told. The seller wants to get more people in contract because it's a new place and some banks will only lend when 50% of units are sold, which this isn't yet.
follow up question: If the deal letter is on its way to the atty, is there anything the mortgage person could say to the real estate agent that would make them pull out or is it in teh real estate agent's best interest to keep it going with the mortgage contingency clause?
thanks so much!
Yes it is normal to have an accepted offer without a mortgage committment. Two things you should do are a) hire a good lawyer (if you haven't already) and have him or her put a "mortgage contingency" into the contract. This will give you 30 or 45 days to get a mortgage, and will allow you to walk away from the deal if you are rejected for the loan. b) Also, you should ask your bank or mortgage broker for a pre-qual letter. This will tell you how much you can borrow.
Hope this helps,