Home Buying in Georgia>Question Details

Gardendirt68, Home Buyer in Georgia

I just had a full asking price offer on a house declined by the seller because I asked for 25 days on the

Asked by Gardendirt68, Georgia Tue May 12, 2009

Financing Contingency. Is this NORMAL? My loan will be through the VA. Thanks for any help!

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All good answers: Another option is if you get fully approed before writing the offer and have a committment letter from a trusted lender then you may not need a financing contingency period as long as you put in the special stipulations that the home must appraise at or above purchase price.
0 votes Thank Flag Link Tue May 12, 2009
25 days is too long - I just killed a similar deal on a listing of mine. Buyers need to go in preapproved and ready to close, I'm not taking any listing off the market hoping a buyer qualifies. Come to the table ready to close and instill confidence in the seller,

Hank
0 votes Thank Flag Link Tue May 12, 2009
Gardendirt68,

That is a long time to ask for a financing contingency even if it is VA. I would shorten that up to about 14 days and you should be okay. That is unless there are other contract stipulations that may have caused the seller to reject the offer.

If you want to stick to the 25 days I would get your agent to convey your reasons for the longer than normal contingency. You should be able to resolve this easily with the listing agent and seller.
0 votes Thank Flag Link Tue May 12, 2009
That is a "tad" long. I am assuming that you are referring to receiving your loan approval. You should be able to have a loan fully approved and in processing within a week. You should have all of your loan conditions in to underwritng including the appraisal and title within 25 days.

I think you came across as though you need over 3 weeks just to get approved for financing, thereby making you not look like a strong and commited buyer.

If you need a loan approval, I can have one for you in about 25 minutes, not 25 days. Just let me know if I can help in any way.

Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com
0 votes Thank Flag Link Tue May 12, 2009
Dear Homebuyer,
Your financing contingency was fairly reasonable, but many factors enter into the decision making process of the seller.
You may have not been the only offeror and another buyer may have offered more, or another offered nearly the same with a shorter financing contingency, or another buyer offered less, but made it an "ALL CASH" deal with a short closing time.
One of my clients made an offer on a property recently well above the asking price but someone else made an lower offer earlier in the day and the seller/bank had already verbally accepted that lower offer. They (to their credit) stood by their verbal acceptance, so my buyer didn't get the property.
My advice to you is to continue pursuing your financing so that it is almost fully approved pending your selection and contract for a future property. Then you will feel comfortable making an offer with a shorter financing period (just long enough to get an appraisal completed).
Sincerely,
Karen and Warren Owen
RE/MAX Communities
770-722-0099
warrenowen@remax.net
Follow us on Twitter at " warrenowen "
Visit our Blog at http://TheWarrenReport.info
0 votes Thank Flag Link Tue May 12, 2009
Sounds like they didn't take your offer seriously. A good approval letter from a lender and fair amount of earnest money may correct your problem.
0 votes Thank Flag Link Tue May 12, 2009
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