Posted on: 09-02-11 15:26:42
I am looking for a house and have a quick question about a situation which may not happen but still can happen:
Suppose I like a house and make a conditional offer based on Mortgage approval.I will be giving some payment as well (is it usually 5%?)
Then I go to bank and based on my job & salary I get the mortgage approval. The closing is in 60-90 days (listing says Possession:60 Days so I assume closing will be in 60 days?) or the closing is usually in a couple of days ?
As I understand, bank would give the money only on the closing , so if between then mortgage approval/offer date and the closing date, I lose my job, what would happen to the deal, as bank will refuse to lend the money if I don't have the job at that time?
If in that case the deal fell through, would I get my 5% back ?
There are quite a few mortgage agents who can arrange your mortgage w/o job , equity or any supporting document . You may have to pay a premium .
Quote:
Originally posted by canadahome
I am looking for a house and have a quick question about a situation which may not happen but still can happen:
Suppose I like a house and make a conditional offer based on Mortgage approval.I will be giving some payment as well (is it usually 5%?)
Then I go to bank and based on my job & salary I get the mortgage approval. The closing is in 60-90 days (listing says Possession:60 Days so I assume closing will be in 60 days?) or the closing is usually in a couple of days ?
As I understand, bank would give the money only on the closing , so if between then mortgage approval/offer date and the closing date, I lose my job, what would happen to the deal, as bank will refuse to lend the money if I don't have the job at that time?
If in that case the deal fell through, would I get my 5% back ?
Your Realtor can arrange everything if he/she is getting business.
Quote:
Originally posted by Newlyborn
There are quite a few mortgage agents who can arrange your mortgage w/o job , equity or any supporting document . You may have to pay a premium .
Quote:
ok, so in case I don't get the mortgage would I get my 5% back which paid for the conditional offer or not?
and when would be the closing date after making the offer..is it a few days or ew months (or depend on the possession) ?
Quote:
Originally posted by canadahome
ok, so in case I don't get the mortgage would I get my 5% back which paid for the conditional offer or not?
and when would be the closing date after making the offer..is it a few days or ew months (or depend on the possession) ?
Your down payment - 5% or 5K or whatever goes to an escrow account. Only a court order can get that awarded to you or seller, if the contract fails. The seller can sue you for not meeting ur obligations.
Closing date is normally around 60 days, but that is something u and seller agrees to in the purchase agreement. Normally buyers have a greater say.
If you are serious abt the purchase, talk to a mortgage agent. As mentioned by previous posters, they can arrange it. I recently bought a place and the agent arranged mortgage terms which I think would not have been possible otherwise.
If you seriously feel there is a chance of loosing job, isn't better to just hold off until things stabize?
All the best
Thanks all for your input.
Aqua,
But that situation can happen anytime that the closing date is after 30/60 days of the offer and empolyer will just give 2 weeks notice for the job.
Another thing is if we make the offer and offer is accepted and we get the approval, would the bank check the documents again on the closing date or they will not re-verify ?
How much premium we are talking about ?
Also, can you please suggest a good mortgage agent ?
True... But then, you really can't plan for everything. Anything can change anytime, which can affect you positively or negatively. It depends on your own risk tolerance, financial security, alternate options etc. If the 60 day closing is what is worrying you, you can always find a place currently vacant. You can close it in then itself - only delay will be you getting mortgage, lawyer stuff and home inspection.
Lender may or may not check things again. They can ask for new pay slip, empl verification letter etc. It depends on the lender, how they evaluate you, random flagging etc. Nothing can be guaranteed.
Check ur pm for the my mortgage agent.
