more on home loan contigency......
State law often regulates real estate transactions. If your state's law does not allow the buyer to rescind the deal upon denial of the anticipated financing, then you must turn to the terms of the contract to see if it allows you to do so.
Do not take the seller's word for what the contract says or means. The seller has no reason to care what interest rate you pay; it only has reason to care that you close on the deal.
Do not rely on your opinion of what the contract means unless you have special training or experience in this area. And even if you do have such qualifications, it might still be a good idea to consult a lawyer in your area.
Loan Contingency.....
It depends on whether the sale contract is contingent on your ability to get a loan of a specified type, and/or at a specified rate, or is merely contingent on your ability to get a loan of any sort.
If you signed a contract presented by the developer and did not have your own real estate agent or attorney negotiating terms for you, the contract was almost certainly drafted to favor the developer in every allowable way, and you will be stuck.
the home loan contingency problem
I bought a new house (in construction) 3 monthes ago. Full documented loan was pre-qualified and contract was signed with loan contingency. The house is in construction and will be close in 2 months. However, I recently got laid off. The loan agent said I no longer qualified for the full document loan, but qualified for no document loan with much higher rate.
With my current financial situation, that would be too much burden. I talked to the new home sales office regarding cancel the contract and get my earnest money back. But they said if I qualified for no doc loan ( not the orignal loan that I pre-qualified), then the loan contingency doesn't apply and I should either close the house or lose earnest money. Has anyone went through similar situation? Can I cancel if the original loan(full document loan) is no longer qualifed?
Smaller businness loan
The smaller the business, the more closely the individual behind it will be evaluated. Most small businesses, in the forms of sole proprietorships or partnerships, are closely tied to the experience, know-how, and overall character of the owner(s).
Therefore, you need to make sure you get your own financial records in order before asking for a bank (or any lender, for that matter) for money to start a business. A solid personal credit rating is also very important, since a small business is typically an extension of the individual who starts it.
A typical bridge loan
A typical bridge loan might be structured as follows:
• The loan is used to pay off the existing mortgage, and the remaining money -- minus closing costs and six months prepaid interest -- is used as a down payment on the new home.
• If, after six months, the old house still is not sold, the borrower will begin making interest-only payments on the loan
• The loan has a term of one-year.
