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Don't lose your earnest money deposit.


Do you know anyone who lost an earnest money deposit after his/her loan was denied? Unfortunately this is more common than one would wish. 

An Earnest Money Deposit is a good faith deposit which should never be confused with a down payment. When buyers execute a purchase contract, the contract states how much money the buyer is putting up solely to secure the contract. An earnest money deposit basically says to the seller you are serious about buying his/her house and thus willing to put your money where your mouth is.

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The contract may also specify you have a limited number of days to secure financing and failure to do so by the deadline if your loan is denied earnest money deposit may be lost. 

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This is why it is highly recommended no matter how confident you think your loan will be approved, that you maximize protection of your earnest money by starting your loan application and submission to underwriting well before you start looking for homes. 

It would not be the first time a borrower holding liquid assets for the same amount or even higher than purchase price to his/her surprise mortgage loan is denied.

A mortgage loan approval process takes into consideration a large number of variables borrowers could not possibly imagine or know before applying for a loan. 

Credit alone presents many challenges such as the number and age of trade lines eligible per guidelines, alerts and validation which may require to pull again credit affecting scores, conflicting derogatory trades, collections or public record information borrower was unaware of, accounts in dispute and so on.

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Employment is another area of concern. Are we in need to qualify with just base income or need also any overtime, bonus or commission income? Then do other income components have the minimum required trend?

What about our assets? Are our accounts free from large deposits which will reduce our qualifying cash to close and thus affect our approval? Do we have NSF charges we were not aware of affecting our approval?

Is our loan requiring to include all debts from our husband/wife even though he/she will not be in the loan? 

In short, a numberless of questions which if not addressed well ahead of time could lead our “perfect loan” thought to be approved in a heartbeat straight into a denial; And of course probably losing our earnest money deposit.

At Clear Lending we believe a humble approach is the smartest way to secure your earnest money deposit emailing us or making an appointment to bring income/assets documents ahead of time before looking for homes so all areas of concern are cleared.    

Don't wait any longer and find out how much you can get Pre-Approved for.

Whether you are considering purchasing or refinancing an existing FHA mortgage loan, Clear Lending can help you. Simply complete our secure and encrypted Pre-Approval Form online and we will contact you right away to review best options for you. 

This advertisement is not an offer for an extension of credit. Programs available only to qualified borrowers. Programs subject to change without notice. Underwriting terms and conditions apply. Some restrictions may apply.



Customers Reviews:

  • Miyumi Denis Llorens • January 12, 2019

    I would like to thank Mr. Joan Gallardo and his team for the information and support given in the complicated process of buying a house for the first time. I thought it would be very difficult and that things would not go as expected but it was all otherwise ... Thanks to the dedication of the staff of the Clear Lending office, everything went better than we had thought .. .. Closing with a very low interest and with input to our favor at the close of our house ... I reiterate our gratitude and I highly recommend this special team ...

  • Gerardo & Brenda Olivares • May 07, 2014

    Joan,

    Thank you SO much for all of your help! You were very patient with us and made sure we understood every step of the way. We never thought we would be able to find our perfect home this soon! We are still in shock how fast you’ve worked and how you were looking out for OUR best interests and not the other way around.

    Thank you for caring in what you do, it really makes a difference when you’re working with someone that really cares and enjoys what they do. Thanks again! We will definitely make sure to send anyone looking into a home your way!

    Gerardo & Brenda Olivares

  • Mary Jones • July 27, 2018

    Thanks Joan, Patricia and Samantha for your amazing help making the purchase of my dream house possible. I really recommend Clear Lending and its team. I remember searching for local lenders who would lend borrowers with low credit scores and I found them. I read some reviews and realized some had been in my same situation. I applied and after 67 days I closed the purchase of the cutest house! They even helped me negotiate with sellers to get them pay all closing costs. Joan I am so thankful I will refer you everyone that is in need to buy a house. I will never forget what you and your team have done for me and my family. Thanks, thanks and thanks again!!!!   

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