Redfin

JUNE 11, 2025

In this article: Home inspection contingency Appraisal contingency Financing contingency Title contingency Home sale contingency Home insurance contingency Kick-out clause FAQs about contingencies in real estate 1. Reasons for denial can include credit issues, job changes, or changes in loan terms.

Purchase and sale agreement

Redfin

MARCH 18, 2025

This deposit is usually between 1% and 3% of the homes purchase price, but the amount can vary based on the local market and the agreement between you and the seller. This ensures that neither the buyer nor the seller can access the money prematurely, protecting both parties during the transaction. Youre using a no-down-payment loan.

Closing

Redfin

JUNE 27, 2025

Not getting pre-approved for a home loan before starting your search A common mistake for first-time homebuyers is jumping into the search without first getting pre-approved for a mortgage. Even a small difference in your mortgage rate can really add up over the life of the loan, so it’s worth your time to shop around.

Pre-approval

Redfin

JULY 21, 2025

Backing out without cause may result in losing your earnest money deposit. If you’re having doubts, want to reassess your finances, or simply change your mind, doing so before any paperwork is signed allows for a clean exit without risking earnest money or triggering legal consequences.

Earnest money deposit

Redfin

JULY 11, 2025

Buyer is unable to secure financing A financing or mortgage contingency protects buyers if they’re unable to get approved for a home loan. If this happens and they’ve included the right contingency, the buyer can usually walk away with their earnest money deposit. Where does earnest money go?

Earnest money deposit

Redfin

JULY 10, 2025

Offering a due diligence fee shows you’re serious and willing to put money on the line, which can make your offer more appealing to sellers comparing multiple bids. Inspection contingency: If inspections reveal major problems and you back out within the agreed timeframe, you get your earnest money refunded.

Due diligence

Redfin

JULY 28, 2025

Similar to your earnest money deposit, these funds are placed into an escrow account, where they’re safely held until the bills need to be paid. It’s a must-have, and your lender won’t approve your loan without it. This protects the lender if you default on the loan. Ask for estimates early.

Earnest money deposit

Redfin

JULY 9, 2025

It’s best to shop around to find the best rate and determine the best type of mortgage loan for you. Decide on important terms like earnest money deposits, contingencies (inspection, financing), and closing dates that can make your offer stand out. Don’t just default to your current bank. If not, you may forfeit it.

Pre-approval

Redfin

JULY 30, 2025

Most homebuyers will need to think ahead about the following costs when estimating how much money is needed to purchase a home: Down payment: The down payment is a percentage of the home’s purchase price, anywhere from 0% to 20% depending on your loan. Several loan options, such as FHA or VA loans, only require a down payment of 3.5%

Pre-approval

Redfin

AUGUST 5, 2025

If your score is under 620, which is the minimum qualifying score for conventional loans, it could be difficult to get a mortgage approval. Getting to the closing table means simply completing the inspection process and making sure all the title work is in order. When you use cash, you can skip this requirement altogether.

Earnest money deposit

Realtor.com

OCTOBER 29, 2020

If the appraised value is less than the sale price, the contingency enables you to back out of the deal without forfeiting your earnest money deposit , says Bishoi Nageh , president of the Petra Cephas Team at Mortgage Network Solutions, in Somerset, NJ. Clear the title. Review your closing disclosure.

Closing

Dwell Real Estate

JULY 10, 2020

The earnest money deposit—the cash you as a buyer offer to essentially call dibs on real estate—is one of the most important (and often misunderstood) parts of the home-buying process. In the Sarasota area, home buyers will usually put down anywhere from 1 to 5 of the real estate purchase price as earnest money. (If

Earnest money deposit

Dwell Real Estate

JULY 10, 2020

The earnest money deposit—the cash you as a buyer offer to essentially call dibs on real estate—is one of the most important (and often misunderstood) parts of the home-buying process. In the Sarasota area, home buyers will usually put down anywhere from 1% to 5% of the real estate purchase price as earnest money. (If

Earnest money deposit

HomeLight

MARCH 2, 2023

With tips on everything from how to save for your down payment, specific loan programs for buyers, and what you should look for in an agent, we’ve got you covered. Typically, the higher your credit score, the lower your interest rate will be, which saves you money over the life of the loan. Loans are between 3%-3.5%

Closing

HomeLight

SEPTEMBER 1, 2022

With tips on everything from how to save for your down payment, specific loan programs for buyers, and what you should look for in an agent, we’ve got you covered. Typically, the higher your credit score, the lower your interest rate will be, which saves you money over the life of the loan. Steps to buying a home in Connecticut.

Earnest money deposit

HomeLight

SEPTEMBER 1, 2022

Typically, the higher your credit score, the lower your interest rate will be, which saves you money over the life of the loan. Different loan programs will require different down payment amounts, but you do not always need to put 20% down when buying a home. Saving for your down payment.

Earnest money deposit

HomeLight

AUGUST 31, 2021

Whoever is facilitating the closing — whether it be a title company, escrow firm, or real estate attorney — will be responsible for preparing the settlement statement. However, the settlement form developed by the trade group ALTA (American Land Title Association) is widely used across the nation for real estate transactions.

Earnest money deposit

HomeLight

MARCH 6, 2023

With tips on everything from how to save for your down payment, specific loan programs for buyers, and what you should look for in an agent, we’ve got you covered. Typically, the higher your credit score, the lower your interest rate will be, which saves you money over the life of the loan. Loans are between 3%-3.5%

Earnest money deposit

Realty Biz

APRIL 17, 2023

You must put up an earnest money deposit when you buy a home. The purpose of earnest money is to show you're serious about buying. Many people refer to earnest money as a good-faith deposit. Earnest money deposits can be used as leverage in negotiations.

Earnest money deposit

HomeLight

JULY 26, 2022

Maybe there are liens or judgments against the title — or maybe they don’t actually own the home they’re trying to sell. Agents] provide the contract, we’ll make sure everything is signed and dated just like it needs to be, we’ll make sure their lender gets it, and it gets sent to the title company. Title contingency.

Earnest money deposit

HomeLight

JULY 31, 2022

Once you’ve zeroed in on a few different lenders, apply for preapproval or prequalification with each and compare the loans they are offering to see what works best for your situation. Some states require that a real estate attorney be involved in every home closing while other states allow real estate agents and title companies to handle it.

Earnest money deposit

Redfin

MARCH 12, 2021

However, your offer likely won’t receive the seller’s serious consideration without putting a good faith deposit down of some kind. Where does the earnest money go? . In most cases, your earnest money deposit is paid to the escrow or title company , which holds it in an escrow account until the transaction closes.

Earnest money deposit

HomeLight

SEPTEMBER 30, 2020

The Federal Housing Administration (FHA) is part of HUD’s Office of Housing, and it guarantees certain mortgage loans for lenders by providing mortgage insurance on loans for borrowers who may not qualify for a conventional mortgage ; the lenders in turn provide those mortgages to homebuyers. The home is then sold at a discount by HUD.

Earnest money deposit

HomeLight

MARCH 7, 2024

Sale price and terms: The agreed-upon price for the property and the terms of the payment, including the earnest money deposit amount and financing details. Unresolved title issues: Encumbrances or disputes related to the property’s title can complicate the sale, prompting buyers to cancel the agreement.

Purchase and sale agreement

Realty Biz

SEPTEMBER 11, 2023

The buyer may not secure a mortgage loan with the terms initially agreed upon, or the lender may withdraw their offer due to changes in the buyer's financial situation. Title Problems Issues related to the property's title, such as unresolved liens, disputes over property boundaries, or undisclosed easements, can derail a sale.

Earnest money deposit

HomeLight

NOVEMBER 29, 2021

While most people have heard that 20% down is some kind of standard, many are unaware that it is possible to buy a home with as little as 3% down — or even no money down, depending on the loan requirements. Before diving into loan options, make sure you know how much you can actually afford with the income you currently have.

Earnest money deposit

Redfin

JULY 16, 2024

Navigating the mortgage loan process can be daunting, but breaking it down into manageable steps can help. This guide will walk you through each phase of the mortgage loan process, from pre-approval to post-closing, with examples to illustrate key points. Different loan terms (e.g.,

Loans

Norada Real Estate

APRIL 15, 2023

Additionally, the type of financing being used, such as FHA or VA loans, can also impact the length of the under-contract period. However, if the buyer encounters financing issues, such as a low appraisal or loan denial, the under-contract period can be extended while they work to resolve the issue.

Earnest money deposit

HomeLight

SEPTEMBER 1, 2022

These are often loans in the form of a second mortgage with their own interest rates and payback requirements. of the mortgage loan amount. GSFA OpenDoors® Down Payment Assistance Program – Down payment and/or closing cost assistance up to 7% of mortgage loan amount. Jumbo loans. City-specific options.

Earnest money deposit

HomeLight

OCTOBER 1, 2020

You now have skin in the game in the form of your earnest money deposit, plus you have a legal duty to buy the home (barring certain circumstances). All in all, contingencies can protect you and your earnest money deposit if certain conditions of the contract aren’t or can’t be met. Appraisal contingency.

Earnest money deposit

Point2Homes

DECEMBER 23, 2021

Most likely, the buyer will then be expected to make an earnest money deposit fairly quickly, which will go into an escrow account until closing. Often, a title company or real estate agent might act as the escrow agent responsible for managing the funds as agreed upon in the contract. What Happens with Escrow at Closing?

Earnest money deposit

Realty Biz

NOVEMBER 11, 2020

They will also get their earnest money deposit back , and the home will go back on the market. Lenders don’t want to loan more money than the property is worth since this will leave them in a losing position if the home goes into foreclosure. Maybe they have an unsubstantiated cash deposit ?

Backup offer

HomeLight

OCTOBER 30, 2020

Maybe you aren’t using a loan, but you can still run into cash flow issues. You were planning to take money out of the account to cover your cash purchase. Real estate contract contingencies are commonly associated with getting a mortgage, as lenders tend to do their due diligence on a property before they’ll put up the money for it.

Closing

Redfin

AUGUST 29, 2024

Your credit score is important as it influences whether you qualify for a loan, the type of loan, and what interest rate you’ll receive. Generally speaking, a credit score of 620 is the minimum credit score for a conventional loan, although some lenders look for a score of 700 for new homebuyers.

Earnest money deposit

HomeLight

MAY 24, 2022

Paying cash saves you money, and you might need a place to live sooner rather than later. But just how long does it take to close on a house with cash, compared to a traditional loan? The bulk of the time, however, is consumed by loan underwriting and processing. Secure title and escrow services: 1 day.

Purchase and sale agreement

Realty Biz

AUGUST 22, 2022

I’m almost certain that your biggest concern is about what will happen with your earnest money if you back out of the deal. As the buyer, you submit an earnest money deposit when you make an offer on a home. Time to have a title survey conducted is another possible contingency.

Purchase and sale agreement

Realty Biz

MARCH 4, 2024

It enables settlement firms to exchange wire instructions, accept earnest money and cash-to-close payments, confirm payout accounts, verify identities, share documents, and collect eSignatures. The platform, trusted by over 400 title companies and law firms and supported by prominent financial service providers such as J.P.

Earnest money deposit