The Close

MARCH 11, 2025

This process involves multiple stages, starting with identifying an FSBO listing to securing appropriate financing and completing the closing procedures. Various financing options exist for FSBO properties, like traditional mortgages, hard money loans, and private investors. For options, check our recommended hard money lenders.

Sales

Redfin

MARCH 18, 2025

This is more common with VA loans or USDA loans, which require no down payment. Youre using a no-down-payment loan. If youre using a VA or USDA loan, you dont have to make a down payment. Financing contingency: If your loan falls through despite your best efforts, you can typically back out and recover your earnest money.

Closing

Redfin

MARCH 4, 2025

From finding houses to tour and what financing options you have, theres a lot to learn about buying a home in foreclosure. If the auction accepts financing, make sure you have a pre-approval ready. Government-owned properties Some mortgages are government-backed, like VA loans and FHA loans.

Pre-approval

Rochester Real Estate

NOVEMBER 5, 2015

If you made an offer and then found there were significant structural problems, you would be in trouble without a home inspection contingency. Financing Even if you are preapproved for a mortgage when you make an offer, you could still have problems getting a loan from your lender when you need it.

Earnest money deposit

Redfin

JULY 10, 2025

Whether earnest money is refundable depends on the contingencies in the purchase agreement. If the contract is canceled due to issues like a failed inspection or financing problems, the buyer typically gets the money back. However, if the buyer backs out for reasons not covered by a contingency, the seller may keep the funds.

Due diligence

Redfin

JULY 9, 2025

It’s also a good time to check your finances. 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.

Pre-approval

Redfin

JULY 21, 2025

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. Common contingencies include: Financing contingency: Protects buyers if they can’t secure a mortgage loan.

Earnest money deposit

Redfin

JUNE 17, 2025

The steps of the due diligence period can include any of the following: Home inspection Pest inspection Appraisal Negotiation of closing costs Title search and title insurance Renegotiations (if applicable due to home inspection) During this period before settlement, the buyer and seller are able to continue negotiations.

Closing

Rochester Real Estate

NOVEMBER 5, 2015

Are your finances ready to buy a home, or will you be better off renting for a few more years? Saving a Down Payment While many home loan options allow low down payments, this will mean additional costs. If major issues are highlighted in the inspection report, you can negotiate with the seller over repairs, or they could credit you.

Purchase and sale agreement

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. Buyer is unable to secure financing A financing or mortgage contingency protects buyers if they’re unable to get approved for a home loan.

Earnest money deposit

HomeLight

FEBRUARY 20, 2025

As of December 2024, 18% of buyers waived the appraisal contingency , with other buyers waiving, for example, inspection contingencies to likewise make their offers more enticing to sellers. The appraisal contingency is there to protect the buyer in case of any issues surrounding your appraisal.

Inspection contingency

Rochester Real Estate

NOVEMBER 5, 2015

They can be expensive to take care of, putting a huge hit on your finances. There are many reasons to have a home inspection when buying a house. When a home seller gets an offer that doesn’t have a home inspection contingency to complete the sale, they often jump on it.

Inspection

Keeping Current Matters

NOVEMBER 30, 2020

Understand Your Finances. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. There are, however, certain contingencies you don’t want to forego. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”.

Inspection contingency

Keeping Current Matters

MARCH 15, 2021

Understand Your Finances. The best way to know this is to get pre-approved for a loan early in the homebuying process. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”. Having a complete understanding of your budget and how much house you can afford is essential.

Inspection contingency

HomeLight

JANUARY 12, 2024

If you’ve been shopping for a home, you’ve likely come across the term “loan contingency,” and you may be considering including this clause in your purchase offer. Or perhaps you’ve already made a loan-contingent offer, and you’re wondering about contingency removal. What is a loan contingency?

Loan contingency

Realtor.com

OCTOBER 29, 2020

These are the most common contingencies that are part of your new home closing process: Home inspection contingency: This gives buyers the right to have the home professionally inspected. It’s rarely advisable to waive an inspection contingency. Your home inspection reports. Clear the title.

Closing

HomeLight

JUNE 9, 2023

Most real estate contracts — or roughly 80% — contain contingencies , according to data from the National Association of Realtors (NAR). As of 2023, 79% of contracts included an inspection contingency while 82% contained an appraisal contingency. What are the most common contingencies?

Home sale contingency

HomeLight

JANUARY 31, 2024

Contingencies are designed to protect both parties involved, allowing the buyer to back out of the purchase without penalty under specific circumstances, such as issues discovered during a home inspection or difficulties obtaining financing. The most extended periods typically relate to mortgage and home sale contingencies.

Purchase and sale agreement

HomeLight

SEPTEMBER 6, 2024

Generally, an appraisal contingency protects a buyer when a home they’ve made an offer on appraises for less than the amount the buyer offered to pay. Appraisal contingencies are just one type of contingency. Other types include a sales contingency , financing contingency, and inspection contingency.

Inspection contingency

HomeLight

DECEMBER 30, 2023

Contingencies while ‘under contract’ Here are some common types of contingencies in residential home sales: Financing contingency: A financing or mortgage contingency safeguards buyers who need to finalize a home loan.

Home sale contingency

HomeLight

OCTOBER 30, 2020

A cash deal can close in as little as 7 days, while financed home purchases tend to take an average of 45 days to close. And if you add a home sale contingency into the mix (that is, if you need to sell your current home before you can buy a new one), closing the deal can take even longer. Financing issues.

Closing

Realty Biz

FEBRUARY 20, 2021

Home inspection: often called a due diligence contingency, will give the buyer rights to have the house inspected. Most buyers will have a home inspection contingency in their contract. Obtaining financing: allows the purchaser to get the funds to buy the property from a lender of their choice.

Purchase and sale agreement

HomeLight

NOVEMBER 8, 2024

This can mean that the buyer’s financing is approved, the inspection contingency is met, or any appraisal concerns are resolved. Factors like buyer financing, required repairs, or the need to finalize paperwork can impact this timeline. Contingencies are conditions that must be met for a sale to proceed.

Inspection contingency

HomeLight

NOVEMBER 29, 2021

But first, you have to sell your old home, potentially secure financing, and secure a home appraisal (and likely an inspection) on your new house. An appraisal contingency protects the buyer because it allows you to back out from the contract if the appraised value doesn’t meet the agreed purchase price. Financing contingency.

Purchase and sale agreement

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. Home Inspection Contingency One of the most common contingencies that can affect the length of the under-contract period is the home inspection contingency.

Earnest money deposit

HomeLight

JANUARY 31, 2025

What fixes are mandatory after a home inspection? Although 20% of buyers waived inspection contingency , you may still be obligated to resolve certain issues, depending on your states and the buyers lenders policies. For instance, purchasers using FHA , VA , or USDA loans each have particular requirements.

Inspection

HomeLight

JULY 31, 2020

To be clear, an all-cash offer means you won’t be getting a mortgage loan for any portion of the sale. This is important: if your real estate agent puts in an all-cash offer on your behalf, they will not include a financing contingency. The seller makes decisions based on the terms of your offer, including contingencies.

Purchase and sale agreement

Point2Homes

DECEMBER 8, 2020

In this case, even though contingencies are still pending, the seller has decided that they will forego any more showings. Short sales occur when the seller will accept a lower amount than is remaining on their home loan. Common Contingencies Found in Real Estate Contracts. Short Sale.

Purchase and sale agreement

HomeLight

JANUARY 13, 2022

Inspection contingencies. Inspection contingencies mean that a buyer can get a home inspected before the deal goes through, and can back out of the purchase with earnest money intact, depending on what the inspector finds. Inspection contingencies can be waived. Appraisal contingencies.

Backup offer

HomeLight

JANUARY 3, 2024

After you open escrow and the buyer submits a good faith earnest money deposit, some or all of the following contingencies may need to be addressed: The financing contingency will appear in contracts where a buyer needs to finalize a mortgage loan to purchase the home.

Purchase and sale agreement

Realty Biz

APRIL 20, 2022

Let’s look at the most common contingencies in an offer and what they mean to buyers and sellers. Common Contingencies Found in an Offer to Purchase. Home Inspection Contingency. One of the most common terms in an offer is the home inspection contingency clause. Mortgage Financing Clause.

Purchase and sale agreement

Windemere Buying

APRIL 12, 2023

Mortgage Lender You need financing to buy a home. Mortgage lenders offer different home loans to match what buyers can afford and what homes they’re looking to purchase. Mortgage Broker Your mortgage broker will work with you to find favorable mortgage terms for your home loan. Seller It takes two to tango.

Pre-approval

Realty Biz

NOVEMBER 10, 2021

There are many common contingencies in a buyer’s real estate contract, leading to a failed home sale. Home Inspection Discoveries. A home inspection contingency is a standard clause to protect the buyer should the home inspection discover problems. Financing Isn’t Guaranteed.

Purchase and sale agreement

Realty Biz

OCTOBER 12, 2021

The top regrets listed were all finance-related, including maintenance, mortgage and other costs being too high. Another big danger associated with maintenance costs is that it has become increasingly more common for buyers to waive the home inspection contingency to try and get their offer accepted.

Inspection contingency

HomeLight

AUGUST 31, 2021

A cash offer simply means that a buyer already has the funds available to buy the house and can pay for it without securing a mortgage loan. From the seller’s point of view, it doesn’t make much difference whether the cash comes from the buyer’s personal bank account or from a mortgage loan. There’s no financing contingency.

Due diligence

HomeLight

MARCH 31, 2022

There are several contingency clauses typically found in a real estate contract: Appraisal contingency: This contingency allows you to walk away from the deal without penalty if you’re using a mortgage and the appraisal comes in lower than the asking price. Why would a seller reject a home sale contingency? Bridge loan.

Home sale contingency

HomeLight

OCTOBER 1, 2020

So as a buyer, you should have a contingency in your contract to protect you in case you can’t get proper financing for the home. Contract contingencies are used in most real estate contracts, and it’s not entirely uncommon for deals to fall through. Financing contingency. Appraisal contingency.

Earnest money deposit