Expert: Dick Dennis - 11/23/2009

Question
My husband and I have been trying to purchase a home since the month of August.  Our contract was signed on August 29 of this year.  We began the financing procedures on September 15.  We have been back and forth with the financial institution.  They approved us but they have been asking for the same papers and it has really become difficult to deal with them. The contract expired on October 30 and we signed 2 extensions but right now there is no paper signed, we are just waiting for the lender to give the ok for the closing but we do not want to continue with this.  We were told that we would lose our deposit unless the bank actually disapproves the sale.  Is this correct?  Do we have to wait till the bank feels like allowing us to close?  Please advise.

Answer
The bank is playing games with you, Maria, because of the tight money out there. The government is limiting the interest rate banks can charge these days, but because of the tightness of the money they want to charge a higher interest rate.

With that in mind, just go to the bank and say something like, "Look, you have been dragging your feet for more than two months now. You are disrupting our lives completely. We want to cancel this deal, but we have been told if we do, we will lose our deposit. So, please get this show on the road and let's close it next week. Okay?"

If they continue to play games with you, just go out and find yourself ANOTHER lender. There are mortgage brokers out there who want your business and will indeed make this deal fly. And you do not have to continue on with this lender if you do not want to. I do wish you well.

Dick Dennis