Zillow Advice: Buying Process - Does the "act diligently to obtain loan" clause obligate the buyer to accept a loan offer? http://www.zillow.com/advice-thread/Does-the-act-diligently-to-obtain-loan-clause-obligate-the-buyer-to-accept-a-loan-offer/504518/ Zillow Advice | Zillow Real Estate My answer is NO, you do not ... http://www.zillow.com/advice-thread/Does-the-act-diligently-to-obtain-loan-clause-obligate-the-buyer-to-accept-a-loan-offer/504518/ My answer is NO, you do not have to take <u>anything</u> offered, but if it is the same as the criteria in the contract to purchase you better take it or get another loan and not go back to tell the seller you can't get one or you would be in breach of contract - In My Opinion (non-lawyer). You can say NO to that loan and work to get a better deal. That is what the clause "shall act diligently and in good faith to obtain the designated loan" means. That you have not just given up and are no longer trying. You can't just drag your feet and never make loan application or return documents slowing down the loan process, that is what you can't do. You can turn down a loan to get a better deal, just don't go past the closing date and say you can't get a loan if offered one.<br/><br/>tim<br/><p><br/></p> Wed, 31 Jul 2013 12:50:00 GMT http://www.zillow.com/advice-thread/Does-the-act-diligently-to-obtain-loan-clause-obligate-the-buyer-to-accept-a-loan-offer/504518/ 2013-07-31T12:50:00Z That's a great question that ... http://www.zillow.com/advice-thread/Does-the-act-diligently-to-obtain-loan-clause-obligate-the-buyer-to-accept-a-loan-offer/504518/ That's a great question that many overlook. &nbsp;In Tennessee, we must notify the other parties to the transaction if the loan type changes. &nbsp;Sometimes, the contract must be amended to reflect additional cost to the Sellers. &nbsp;<br/><br/>Most times, a VA loan has additional cost to the Sellers and could affect their net proceeds. &nbsp;If their payoff is very tight, it could cause them to bring funds to closing.&nbsp;<br/><br/>Best,<br/><br/>Bob Wed, 31 Jul 2013 12:35:00 GMT http://www.zillow.com/advice-thread/Does-the-act-diligently-to-obtain-loan-clause-obligate-the-buyer-to-accept-a-loan-offer/504518/ 2013-07-31T12:35:00Z Technically speaking, yes, ... http://www.zillow.com/advice-thread/Does-the-act-diligently-to-obtain-loan-clause-obligate-the-buyer-to-accept-a-loan-offer/504518/ Technically speaking, yes, you'd risk your deposit if you're offered a loan for the amount specified and you don't take it.&nbsp; Realistically it's not usually hard to get a rejection letter though, if you want it.<br/><br/>--<br/>This is not legal advice and is not intended to create an attorney-client relationship.&nbsp; The post is only an opinion.&nbsp; You should speak to an attorney for further information.&nbsp; The poster is licensed only in CT &amp; NY.&nbsp;&nbsp;&nbsp; If this post is useful to you, please remember to upvote it. Wed, 31 Jul 2013 11:41:00 GMT http://www.zillow.com/advice-thread/Does-the-act-diligently-to-obtain-loan-clause-obligate-the-buyer-to-accept-a-loan-offer/504518/ 2013-07-31T11:41:00Z