I am in process of buying a house in los gatos. If I remove loan contingency (which has to be done after 17 days), and the loan is not approved,

Asked by Anh Nguyenh, San Jose, CA Sun Dec 16, 2012

would I loose my 3% deposite money? thanks.

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Ernestspring…, Home Buyer, New York, NY
Mon Dec 17, 2012
Do you need a loan if yes email us with
Name
Age
Sex
Country
Tel
postal code
Loan amount
Loan term
Monthly income
Email us at ernestspringloans@gmail.com
Web Reference:  http://m.trulia.com
0 votes
Ernestspring…, Home Buyer, New York, NY
Mon Dec 17, 2012
Do you need a loan if yes email us with
Name
Age
Sex
Loan amount
Loan term
Monthly income
Email us at ernestspringloans@gmail.com
Web Reference:  http://m.trulia.com
0 votes
Mario Pinedo,…, Agent, Cupertino, CA
Mon Dec 17, 2012
17 days is the default time line in the California Association of Realtors (CAR) purchase agreement. It is best to ask your lender how long is needed to get a loan approved.
The lender that I work with can definitely get a single family home loan approved in 17 days if all buyer documents are submitted. Delays will occur when dealing with condo associations, jumbo loans and other out of the box loan scenarios.
It is not recommended to remove your loan contingency until you have an approved loan. Negotiate for the time that you need with the seller.
Also - have a back up lender in case your primary lender cannot perform.
0 votes
Ron Thomas, Agent, Fresno, CA
Sun Dec 16, 2012
For this ecact reason, lately, we have been putting either a 30 day Contingency, or, and "end of Escrow" Contingency.

At the end of 17 days, you don't lose your deposit; you just lose your ability to walk away with your Deposit if you can't get the Loan by the end of the Escrow: You still need to get the Loan in place; and you still have until the end of the Escrow, (unless you get an extension).

Why aren't you talking about this with your Realtor?
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