Need a clear to close

[Steve Bell]

Hi BP community,

Just need a little reassurance. Trying to close on 2nd STR tomorrow. Have not yet received a clear to close from my lender. Going the conventional loan route.

We are getting a little hung up because the lender knows we are at the top end of the DTI ratio, and they have been getting creative with trying to help us bring it down at closing so the underwriters will clear us.

The issue is our revolving credit. Our lender told us to use our HELOC to pay off all credit debt to consolidate the credit cards and hopefully get a lower monthly payment. Now they are telling me in the 11th hour they are not sure that will be enough and quite possibly may not be able to get a clear to close.

The lender months ago told me to go ahead and get this deal, and made it sound like they could make it work, are there legal and financial ramifications if the underwriter is unwilling to give us a clear to close and can’t buy the property?

Thanks in advance for any and all advice.

[John Underwood]

Do you have a financing contingency in your contract with the seller?