keep on searching for a mortgage….fha loans are usually the best with very low rates

No and no. When you receive a counter offer from a lender, it is not based off of what was originally applied for. Therefore, you can decline a counter offer at any time. As long as you have a financing contingency clause in your purchase contract, you’ll be fine. Once you decline your counter offer from the bank, ask them for a denial letter for the original financing asked for. Since they didn’t give you what you originally asked for, they will be able to provide this. You may get a lot of, “well, technically, you weren’t denied,” but keep pushing it. Trust me, they have to give you one. Upon receipt, provide the denial letter to your Real Estate Agent, who will give that to the seller’s Agent, and you’ll get your earnest money deposit back. It will take a little time, but you’ll be able to make it happen.

Good luck.

Contracts are based on offer and acceptance. Both parties have to agree on the terms. If you do not have this (along with a few other requirements) you do not have a contract.

Nope - you’re not obligated to purchase it if you can’t afford it, nor should you consider doing so. If you really want this property, ask the loan officer what the maximum purchase price has to be in order for you to qualify at the lower rate. Tell your agent to inform the sellers that if they can’t or won’t lower the price to this figure you’ll have to back out due to inability to obtain financing. Don’t worry - there’s plenty of houses to choose from if this one falls through!

NO… Tell them that the only way you can buy is if they lower their price so that your payments would be the same as they would be at the lower rate.. It is a buyer’s market and home sales are slow.. If the seller will not accept your deal .. someone else will.