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?
Well if you were approved, then It appears the answer to your question is.... YES.








Oh wait, I didn't read all of your question. Why would you apply for a loan if you didn't think you could afford the loan?Can someone with less than one year work experience with $28,000/year income be approved for $168,000 home?
You need to take some responsibility here. On a salary of $28k a year, you should have known that you would not be able to afford a home for that much. You should probably read othe fine print of the agreement that you signed with the builder to see what your rights and responsibilities are, which is what you should have probably done before you signed it in the first place.
That's the horrible thing about the housing industry. No one cares if you can afford it. It's your responsibility to understand your own limitations and financial situations.





Of course they won't let you back out! You signed a contract! It's your fault you're not able to comply, not theirs. If for some reason the weren't able to hold up their end of the bargain you would sue them right? I would suggest getting a lawyer and consider bankruptcy---get all you options ready. Lenders pray on people like you! They can see you can't afford it, but why would they say anything when the food they put on their table is contingent upon making a commission and signing contracts?
Unfortunately since you signed for it you owe. You would think that if you informed them that you can't afford the upgrades they would be nice about it. But you legally signed and said ';I want and will pay for the upgrades';.





So basically you owe for the entire house. This could be easily done in court.





Did you move in or take possession of the keys and when did you notify them that your situation changed? Before that or after?





Possibly with a good attorney you might be able to do something. Wells Fargo is not a little company. 28k, less than one years experience and 1% down? Plus 6.125? It sounds predetory and you could probably sue everybody but until then you owe.You signed.





You need an attorney to file things right and left. You need to contact the various companies including Wells Fargo and write down everything. Your lawyer will need something to go on. They might settle on the upgrades but you will still need to keep you payments current.





Consider a roomate or a second job.
Do not blame the bank for your mistake. They did not force you to buy the house, you came to them wanting it. They tried to help you out by letting you have it. The only person responsible for your finical situation is you. Quite whining and grow up.





With that said, try and sell the house. You may make some money on the deal, and then again you may lose some money on it.
Well first off, it depends on a lot of variables. How much money you have on hand, your cost of living, current rent, credit rating, etc...





You are to blame unfortunately, no one else.