I had no mortgage contingency included in the purchase, the loan is denied, what happens now?
My husband and I are first time buyers, and we found a house we love. We were ready pre-approved, and confirmed that there would be no funding problems. We signed a purchase and sale, and then to inspections and evaluations. There were a few things in control, but these vendors have agreed to improve the assessment and came back fine. Our loan specialists, announced today that the VA will not fund our loan due to some of the collections of six years. Then, when searching what to do now, I think there is something called a “mortgage contingency”, which is generally intended to protect the buyer if they can not obtain financing. Well, it was not included in our contract. Obviously I know nothing of this sort of thing, and it seems that the realtor should have informed me the opportunity to have an event included in our mortgage contract. Real estate brokers are required to inform buyers about this? In addition, the seller can sue me if I can not get funding? Pre-approval/qualification We went through the whole process, reports credit, income, finances … All the lender has been published, and he said we were approved without any problems. He said that lenders do not worry about something old, as we ‘got a good credit history since.