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?

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HomeLight

DECEMBER 12, 2023

Perhaps the biggest gear that needs to turn in your favor is the mortgage loan. A common worry among homebuyers is to find the perfect house, put down a deposit with an accepted offer, and then learn that your mortgage application is denied — you lose both the house and your earnest money. How does a mortgage contingency work?

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Earnest money deposit Mortgages Purchase and sale agreement Finance 104

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. How long can a house be contingent?

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Realty Biz

MARCH 29, 2023

This is someone who wants to buy a property with an all-cash bid, eliminating the need for a mortgage or other financing solution. For example, there's no need for a loan contingency (mortgage contingency). With a standard purchase, this allows a buyer to back out of a sale if they can't obtain a loan.

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Realtor.com

NOVEMBER 28, 2022

Yet any homebuyer out there today will also face steep mortgage interest rates, which have more than doubled over the past year to the 7% range. Most sellers who move would need to get a new mortgage, at a higher rate. Can I handle the possibility of two mortgage payments—and if so, for how long? ® Chief Economist Danielle Hale.

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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. Though you can (and should!)

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HomeLight

JANUARY 13, 2022

An appraisal contingency allows a buyer to walk away from a sale if after an appraisal is completed if the value of the home is found to be less than the purchase price. This is the most commonly waived contingency, with 21% of buyers going without an appraisal, according to NAR data. Financing contingencies.

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