Pre-approved VA loan was denied during underwriting and now the sellers won’t give me my $10K earnest deposit back.

This is something that is obviously very difficult to TL;DR, but I will try my best.

I am medically retiring from the U.S. Army in August. My wife and I were looking to buy our first home for stability after years of uprooting and moving wherever uncle Sam thought was a good idea.

I found a realtor who linked me up with a loan officer and was pre-approved for a loan of $600K. During this entire process, I have so far told my realtor and loan officer that my 100% disability ratings from the VA are proposed. My ratings will not become final until I reach my official medical retirement date in August. I even provided proposed letter proof and other documentation because I wanted this to be 10000000000000% clear before moving forward.

At no point did my realtor or loan officer say that this will be a problem. Consequently, my pre-approval of $600K was based on my actual current income, and my proposed VA disability income.

My wife and I found a home, liked it, and put an offer for $585K. The sellers accepted our offer, so we paid money for a home and HVAC inspection, as well as the VA appraisal. The VA appraisal came in at $586K, so we did not need to pay the $10K appraisal gap that we put down. Cool!

Here is where shit hits the fan. For some bizarre, twisted reason that I still do not understand to this day, the seller’s listing agent told the sellers that they are good to move out while we were in the underwriting process and didn’t tell my realtor or anybody else.

At this point, there was no clear-to-close. Our loan was not officially approved during the underwriting process because the underwriters said that my $600K loan is not valid. Why? According to the underwriters, the VA disability income does not exist yet as it is proposed, so it cannot be used in my loan. Does this suck? Yes. Am I mad that it took this far into the process for someone to tell me this? Yes. However, do I see what the underwriters are saying? Totally.

Meanwhile, the sellers find out that our loan wasn’t approved, but because of their listing agent’s guidance, they are literally halfway across the country under the assumption that the money they were to receive from this sale would help them build their new property. Now the sellers are extremely mad and refuse to give me my $10K earnest money deposit back.

Is this fucking legal? I can’t believe this shit. We have a VA financing contingency in the contract.

submitted by /u/decyphier_
[link] [comments]

This is something that is obviously very difficult to TL;DR, but I will try my best. I am medically retiring from the U.S. Army in August. My wife and I were looking to buy our first home for stability after years of uprooting and moving wherever uncle Sam thought was a good idea. I found a realtor who linked me up with a loan officer and was pre-approved for a loan of $600K. During this entire process, I have so far told my realtor and loan officer that my 100% disability ratings from the VA are proposed. My ratings will not become final until I reach my official medical retirement date in August. I even provided proposed letter proof and other documentation because I wanted this to be 10000000000000% clear before moving forward. At no point did my realtor or loan officer say that this will be a problem. Consequently, my pre-approval of $600K was based on my actual current income, and my proposed VA disability income. My wife and I found a home, liked it, and put an offer for $585K. The sellers accepted our offer, so we paid money for a home and HVAC inspection, as well as the VA appraisal. The VA appraisal came in at $586K, so we did not need to pay the $10K appraisal gap that we put down. Cool! Here is where shit hits the fan. For some bizarre, twisted reason that I still do not understand to this day, the seller’s listing agent told the sellers that they are good to move out while we were in the underwriting process and didn’t tell my realtor or anybody else. At this point, there was no clear-to-close. Our loan was not officially approved during the underwriting process because the underwriters said that my $600K loan is not valid. Why? According to the underwriters, the VA disability income does not exist yet as it is proposed, so it cannot be used in my loan. Does this suck? Yes. Am I mad that it took this far into the process for someone to tell me this? Yes. However, do I see what the underwriters are saying? Totally. Meanwhile, the sellers find out that our loan wasn’t approved, but because of their listing agent’s guidance, they are literally halfway across the country under the assumption that the money they were to receive from this sale would help them build their new property. Now the sellers are extremely mad and refuse to give me my $10K earnest money deposit back. Is this fucking legal? I can’t believe this shit. We have a VA financing contingency in the contract. submitted by /u/decyphier_ [link] [comments]

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