When home buyer can cancel sale and get deposit refund

Purchase offers can be contingent on mortgage terms

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DEAR BOB: I would like to make a home purchase offer with a 15-year mortgage, a 20 percent cash down payment, and a 5 percent interest rate. After the home seller accepts my offer, suppose the bank approves my mortgage at terms other than what I specified. Can I back out of the purchase contract or do I have to accept the offered interest rate? – Ray X. DEAR RAY: Yes, you can make your home-purchase offer contingent upon obtaining a mortgage at the terms you specify in the offer. Purchase Bob Bruss reports online. However, if you make a good-faith effort by applying with several mortgage lenders and cannot obtain the specified mortgage terms, then you can either accept the best available terms or show the seller the contingency can't be met and get your earnest money deposit refunded. But a better tactic before shopping for a home is to first get pre-approved in writing by a mortgage lender. Then you will know the mortgage terms available, contingent on the home appraising for th...