How can I be sure I’ll get my down payment back if I don’t get approved for the mortgage I need?
Answers | 3
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.
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