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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:

  • Maria Luciani • February 14, 2017

    Thank you so much Joan for helping me get approved and close on my beautiful house after being denied by AMCAP and CORNERSTONE over silly stuff. I signed a contract with Stormi Harris from NEWMARK homes and she pretty much requested me to get approved with their preferred lenders. First, I went to AMCAP and later I was sent to CORNERSTONE. Both first approved me but after waiting and a second review or something like that denied me for not having 2-year employment history with same employer and for a couple of silly old issues on credit. At that point, I had given NEWMARK homes over $13,000 which sometimes as per all communications I felt builder I was not going to get back if I didn’t get approved. Then I after searching on google for local lenders I was lucky enough to find Clear Lending and after sending an approval request I got a call from Broker Joan Gallardo. I advised him about the urgency and after I sent him my documents requested he gave me peace of mind by telling me I had 90% chance of being able to close. Joan was so clear and precise with what to expect I felt I was on the right place. After few conditions we had to clear I got the good news I was Clear-To-Close. I am so thankful I want everyone to know this guy rocks and if you are buying a brand new house maybe you want to avoid builder lenders if you don’t have everything perfect. Loan Officers will tell you everything is ok but as I lived it I can see they had no idea what underwriting may come back with after waiting and waiting for an approval. Soo scary!!!! Thanks Clear Lending for saving me from a huge loss and helping realize my dreams. I will refer you all my friends or whoever ask me if I know a good lender!!!

  • Alejandro Paredes • April 18, 2018

    First and foremost I want to thank the entire Clear Lending team for this incredible experience. Joan Gallardo was very professional and honest throughout this whole process. He took the time to explain everything step by step and at any time of day. I am a DACA recipient and that wasn't no issue at all for Mr. Joan to get me a loan for the low rate of 3.875% interest. To me that is amazing and very appreciated because other loan companies told me I was not able to get a interest rate like that because I was a DACA recipient. I highly recommend Clear Lending for DACA recipients because they opened the doors for me so I can accomplish my dreams of purchasing my first home. Patricia was also very attentive to my process and helpful every step of the way. Mrs. Rosa Iraheta was my realtor who helped me look for the home and made sure it met all my expectations. I can't thank you enough for all the time and hard work you and the whole Clear Lending team put for me and my family to be here today in our new home. May God bless you all! And Thank you!

  • Natalia y Juan Ochoa • August 27, 2013

    Buenas noches Joan,

    Espero que este mensaje lo encuentre bien. Le escribo para darle las gracias por su ayuda y apoyo durante el proceso del préstamo de nuestra casa, aprecio su servicio y interés ante la situación y mas que todo su eficiencia y profesionalismo para realizarlo.

    De nuevo mil gracias por ser parte de este momento tan importante para nosotros . Le deseamos la mejor de la suerte a usted y a su empresa.

    Esperamos seguir en contacto para un futuro.

    Un cordial saludo,

    Natalia y Juan

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