loan processer says I can purchase a $360K loan, but I dont know how

F

fredred

New Member
I am about to close on a property that I dont think I qualify for. When I saw a house I like which is $360K, my real estate agent recommended a loan officer who she says can help. I gave all the necessary documents to this loan officer, got an appraisal (done but I have not seen the document), and right now, it seems my loan is approved and still on tract to close in 9 days. The monthly payment is way above my comfort zone, and I dont understand why I was qualified for this loan.

I have expressed and written an email to my loan officer and real estate agent that I dont think I can afford this house within the 5 days of changing my mind, but was talked our of it. Reputable mortgage calculators indicate that with all the money I make, loans that I need to pay and such, that I can only get approved for a loan with $260K max. Sure that I can stretch my finances to cover my monthly mortgage to some extent, but based on the documents I gave the loan officer, there is no way I can qualify for this $360K loan.

Now, I stand where I can lose my 3K earnest money and possible lawsuits from the builder for backing out. is there a law that protects consumers from loan officers that put consumers in this situation?

thanks,
Fred
 
If you didn't think you could afford the loan or the loan payments were more than you wanted to pay, you shouldn't have accepted the loan for the house.
 
I agree with you. But being insiders in the business, they should have been upfront me and told me that $360K is way above what I can afford. But instead they looked for a lender that's willing to do this loan.
 
fredred said:
I agree with you. But being insiders in the business, they should have been upfront me and told me that $360K is way above what I can afford. But instead they looked for a lender that's willing to do this loan.
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Better to the give them the $3,000 earnest money than to get yourself into a financial pickle that'll destroy you and your family.
You allowed yourself to be hoodwinked by slick talking salespeople.
It's a small, but honest mistake.
I suggest you stop now, let go of the three large, and walk away a wiser man.
There still is time to avoid financial destruction, retain your good credit, shop for a cheaper house, and stay solvent.
One last tip, if the calculators suggest $260,000, keep it about 1/3 UNDER that guideline.
In your case, shop for a home costing no more than about $180,000.
You'll love that result.
In many cases, people in this country let their eyes drive their decisions.
 
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Thanks for you input. It was difficult for me to do but I think in the long run, I will thank myself for walking away before closing.

do you guys know if theres a law that protects consumers against this tactic. I honestly believe that somewhere that theres some misrepresentation done on my part. I honeslt believe that the loan I almost got was fraudulent.
 
I don't think I would call it fraudulent when you didn't have to accept the loan. You can hold & see if you get other replies.
 
fredred said:
Thanks for you input. It was difficult for me to do but I think in the long run, I will thank myself for walking away before closing.

do you guys know if theres a law that protects consumers against this tactic. I honestly believe that somewhere that theres some misrepresentation done on my part. I honeslt believe that the loan I almost got was fraudulent.
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No law that I have ever heard of protects a sane, competent adult from making a bad deal or signing a contract not in his or her best interests.
As a free peoples, we are allowed by our government to do as much stupid stuff as we can bear.
Good for you for deciding to walk away.
That's how they further entice you NOT to walk away, make you put a little skin in their "con" game.
If you wanna have some fun, you can sue the broker in small claims court.
It might cost you a couple hundred to prosecute the suit yourself, but you might get lucky and the grafters might offer you $1,000 to withdraw the lawsuit.
 
Its fraudulent when they approve you when youre not supposed to be approved for that loan. Its fraudulent when they try to make numbers work so they can get the commission when the loan closed.
 
fredred said:
Its fraudulent when they approve you when youre not supposed to be approved for that loan. Its fraudulent when they try to make numbers work so they can get the commission when the loan closed.
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Well, there you go. Sue the broker in small claims and convince the real judge. If you do, you win.
 
It is your responsibility to know what you can afford, not theirs. Did you see a truth in lending statement regarding the loan details? You most likely did and accepted the terms. If you can get out of it with a loss of a few thousand that is far better than being on the hook for the loan full-term.
 

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