I entered a contract to purchase an SFR in Fairfield County, Connecticut, with a mortgage contingency that writes I need to get a 600K loan (purchase price of 800K i.e. 25% down payment) at prevailing rates by a specified time. I was already pre-approved by a local bank for such a loan. I had already sent copies of all the documents that the bank asked.
After the contract the bank immediately asked for the appraisal. The appraisal came at the purchase price of 800K, but now my banker asked for more money down (30%) because of "risky market conditions and high inventory". I have one week left in my contingency.
I asked around several days ago and no other bank was willing to give a mortgage by the closing date or at around rate that I had locked with this bank.
If I do not accept the "counter-offer" for the higher down payment, will I be able to receive all of my deposit back? The contract says that I need to put my best effort to obtain and if not able, notify sellers in writing that I could not obtain a mortgage of 600K by the specified date and my deposit should be returned in full.
Thanks
After the contract the bank immediately asked for the appraisal. The appraisal came at the purchase price of 800K, but now my banker asked for more money down (30%) because of "risky market conditions and high inventory". I have one week left in my contingency.
I asked around several days ago and no other bank was willing to give a mortgage by the closing date or at around rate that I had locked with this bank.
If I do not accept the "counter-offer" for the higher down payment, will I be able to receive all of my deposit back? The contract says that I need to put my best effort to obtain and if not able, notify sellers in writing that I could not obtain a mortgage of 600K by the specified date and my deposit should be returned in full.
Thanks
