[Chrisnic419]

...purchase agreement, loan denied, what happens now? My husband and I are first time home buyers, and we found a home that we love. We were pre-approved for the loan, and assured that there would be no problems with financing. We signed a purchase agreement and went ahead with the inspections and appraisals. There were a couple of small things with the inspection, but the sellers agreed to fix them and the appraisal came back fine. Today, I was informed by our loan specialist that the VA is not wanting to fund our loan due to some collections from 6 years ago. THEN, while researching on what to do now, I find out there is something called a "mortgage contingency" that is usually included in the purchase agreement to protect the buyer if they cannot get financing. Well, it was not included in our contract. Obviously I know nothing about these kind of things, and it seems like the realtor should have informed me of the option of having a mortgage contingency included in our contract. Are realtors required to inform buyers of this? Also, can the seller sue me if I can't get financing?We went through the whole pre-approval/qualification process, credit reports, income, finances...everything was disclosed to lender and he said we were approved with no problem. He said the underwriters wouldn't worry about something that old when we have had a good credit history since then.