Can someone with less than one year work experience with $28,000/year income be approved for $168,000 home?

I was - with Wells Fargo Home Mortgage. They said my excellent credit helped 730 and because I was preapproved with MidAmerican Home Mortgage. Now, for the dilema. I signed a contract to buy a house for $168,000 and was approved for the loan pending my financial situation doesn't change (this was in Feb. 07) The house finished build date was about Oct. 07. I locked into a rate at 6.125 using 1% non-refundable down. I am not making enough money now to afford this place, so I told them I want to back out. THEY WON'T let me! The builder wants me to pay for the upgrades even though I notified them of my status before the upgrades were put into place. And, I can't get any of my 1% down back even though I can prove I cannot afford the place. HOW DOES A BANK EVEN APPROVE SOMEONE IN MY FINANCIAL SITUATION FOR 168,000 in the FIRST PLACE?


IS THIS LEGAL? Do I have legal recourse if they try to sue me for the upgrades or ';breach of contract?';


-----Please HELP!Can someone with less than one year work experience with $28,000/year income be approved for $168,000 home?
you need to look at the contract





if you have not closed / you have not signed the loan





can't you ask the bank for a letter that says they will not fund





isn't the purchase of a home usually contingent upon mortgage financing ?





i would ask your banker for help ... a turn down letter would help





if you close on the house, you will lose it anyway if you can't afford





banks will always approve for more than you can afford . this is a business for them . they are money saavy . this is their job.





the whole ARM mortgage product was sold and they knew upfront that people would go to foreclosuresCan someone with less than one year work experience with $28,000/year income be approved for $168,000 home?
legal, yes unless ur under 18.


sorry to hear ur learning hard lessons now.


suggest u get 2 more pt/tm jobs to make the bills until u can sell. don't fill the house with stuff u have to move later. use nice bed sheets as curains infront window , keep ur utlities, low car bills low. save ur cash for the sale.


suggest u check with 'legal aide' in ur area what ur options are. as for the down - forget it.


visit daveramsey.com to learn ur hard lessons by others mistakes.


OH banks will finance undocumented 'illegal' foreign nationals for a buck.
You signed a contract and put down a down payment, the only thing you can do now is sell it when it gets done. They should never have approved you for it but YOU should have known that you could not afford it also. In the end it is your responsibility to figure out how much you can afford.
What does your contract say? Whatever the contract that you signed says, that is what you have to do.





They approved you for the mortgage because someone along the way committed fraud. Even if you BROUGHT HOME $28000/year you couldn't have made that payment. You only have about $600/month to allocate to rent/mortgage.





In the future: DO NOT sign a contract (not even with a cell phone company) until you have READ and UNDERSTAND the contract. If it is a contract for more than a few hundred dollars, CONSULT with an attorney!
You are not approved any longer. Explain to the lender that with the current crisis in the mortgage industry the government and others are looking to tighten credit to prevent what is about to happen to you, making a loan where the borrower cannot afford to pay for the mortgage. Point this out to Wells Fargo, and Mid American Home Mtg. and they will have to issue you a declination letter, which when you take to the builder he will be forced to refund you your earnest money provided your sales contract stated that the sale was contingent on financing, which most have. If you are unable to obtain financing you cannot be compelled to close the transaction.