write an offer without loan contingency?

New / Eng Tc270Nw150
May 13 12 Comments

I have the pre approval, but my file is still in underwriting. My agent says loan contingency is not required and it hurts my chances. I'm worried that loan does not approved since my debt to income ratio is in the boundary of being too high for this interest rate.

What to do?

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TOP 12 Comments
  • Intel babubhatt
    Do you have other contingencies in your offer? If so, probably fine to waive as you could still back out after the inspection. Otherwise, I wouldn’t.
    May 13 5
    • New / Eng Tc270Nw150
      OP
      Yes there's 7 day inspection contingency. I didn't know we can back off with reasons not related to inspection.
      May 13
    • IBM / Data bbWI22
      You can literally say you don’t like a door handle and back out.
      May 13
    • IBM / Data bbWI22
      Not if you do it within the 7 day contingency
      May 13
    • Microsoft
      Hitmonchan

      Microsoft

      PRE
      Microsoft
      Hitmonchanmore
      If you back out due to inspection (and I assume it’s not an inspector your agent recommended?) then you will give the sellers time to address the work needed. So if you say door knob they can fix that.
      May 13
    • Intel babubhatt
      True but you could always pull something like “I got a bad feeling in this house during inspection” and back out. Not the classiest thing to do but totally allowed
      May 13
  • Glu Mobile PQSK63
    Don't give up loan contingency. If your agent is telling you to waive that, he is just trying to make a quick buck and not acting in your best interest.

    If you waive, and you offered 800k and bank only apprised the house for 750k. You will be required to pony up 50k extra or lose 3% deposit. If you didn't waive, you can renegotiate or back out with your deposit returned.
    May 13 1
    • Airbnb YdSR51
      ^ this. I’ve had first hand experience with crappy Bay Area buyer agents that work against my interest because it translates to a faster sale.
      May 15
  • Coldwell Banker / Consultant
    wUFb57

    Coldwell Banker Consultant

    BIO
    14 yrs in Real Estate Work for a top company and take pride in my work ethics No nonsense just honest hardwork is what I put in to get repeat business
    wUFb57more
    Why would you waive loan contingency? Specially in this market when seller’s are motivated to sell
    May 13 0
  • Salesforce baby J
    If the only way you can get that home is by getting a loan the Do Not give up loan contingency. Clearly your agent does not represent you interests in good faith.
    May 13 0
  • Facebook public2
    I wouldn't unless you have the cash to cover a potential delta between appraisal and price.
    May 13 0
  • Microsoft
    Hitmonchan

    Microsoft

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    Microsoft
    Hitmonchanmore
    Did you give yourself adequate time to close? And do you have the money to pay down in case the home does not appraise?
    May 13 0