Legally speaking, what are my odds of getting anywhere with this mortgage?
My husband is a naval officer, we were pre-approved for a home loan- put an offer on a place, the offer was accepted, put down a "good faith deposit," paid for a building inspection, are under contract, etc..
Yesterday the loan company called to inform me our loan is denied because the numbers were not adding up. It turns out the loan originator put down the wrong BAH pay grade for my husband (an O-1E in lieu of just an O-1- the difference is 300 dollars and my monthly income is above that, but there were other issues because my husband just graduated OCS and hasn't received a full month of officers pay- plus our BAH is currently based on his home of record and not where we're moving a 485 dollar difference). They will be keeping our money if we can not get approved (I'm currently submitting my income hoping that will help, we have student debt which is playing a role here)
Is there anything we can do to get our money back if we are not approved? My husband opened the loan and got the pre-approval- he said he did not sign anything during the pre-approval process. They ran our credit (which is fantastic- but we do have a large amount of student debt).
I've read online for USAA keeping the deposit is common practice because it was made in good faith.
- WRGLv 71 decade agoFavorite Answer
I've never seen a earnest money agreement that didn't refund the deposit if the loan didn't go through. As for the inspection that is your cost.