Asked by Brady  |  Submitted April 29, 2014

How can I be sure I’ll get my down payment back if I don’t get approved for the mortgage I need?

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  Answers  |  3

April 30, 2014


There is almost always a "finance contingency" in the contract which stipulates that if you are not approved for the loan, your earnest money deposit will be returned to you.

Hope that helps.

$commenter.renderDisplayableName() | 10.19.20 @ 16:26


December 05, 2014

1. Your offer is accepted and you have already had a lender pre approve you at this point you will give some "earnest money" typically 1% of sales price

2. You agree to have either 10 or 17 days to get final loan approval, you do all your inspections and during this time you can back out and get that money back

3. After your appraisal is perfect and lender says it's okay to release that earnest money on say day 17; however some borrowers/buyers wait to release until they actually are clear to sign loan documents

4. You sign and wire your down and closing costs next day you close

After you close you typically can't get any money back. Your whole down payment is never at risk during the process. Find an experienced realtor and lender to guide you through the steps

$commenter.renderDisplayableName() | 10.19.20 @ 16:26


March 02, 2016

You make the down payment at closing, when the loan has been final approved, so losing it isn't a concern. If you're referring to your earnest money deposit, you want to work with a lender with great references, make sure he explains your loan options, any concerns, and how those will be addressed. Your sales contract should have a financing contingency clause, it requires your earnest money to be returned if you cannot obtain financing by the contingency date. Lastly, make sure a third party, such as a title company is holding your earnest money, rather than a party with a vested interest, such as the seller, seller's attorney or realtor. More questions? Glad to help, I write loans nationally. Feel free to contact me through my profile. Thanks. Ted

$commenter.renderDisplayableName() | 10.19.20 @ 16:26