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What Does Removing the Loan Contingency Mean for Homebuyers?

HomeLight

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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Everything You Need to Know About Loan Contingency Removal

Mashvisor

Loan contingency removal can benefit both the buyer and seller in a real estate transaction. A contingency sets conditions that… But there are some things you need to consider first.

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Rookie Reply: How to Beat Cash Buyers, Tenant Brawls, and Appraisal Tips

Bigger Pockets

Whether someone comes in low or high, the prospect of a smooth closing without any loan contingencies is often more than […]. A cash offer almost always gets a seller’s attention.

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The Next Evolution of iBuyers: ‘Power Buyers’

RIS Media

Power Buyers solve this for sellers by helping them buy without a loan contingency before they sell. This makes it hard for potential sellers to buy a house, creating a “chicken-and-egg” scenario.

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How Long Can a House Be Contingent?

HomeLight

Appraisal contingency: This ensures that the property must be appraised at a value equal to or higher than the sale price. Mortgage or financing contingency: This loan contingency stipulates that the buyer must secure financing from a bank or other financial institution.

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What Do Cash Buyers Look for in Real Estate?

Realty Biz

Property sales often involve several contingencies , but cash buying can eliminate some, making things easier. 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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What Is a Mortgage Contingency? Purchase Offer Protection

HomeLight

If your loan application is denied, or you can’t secure financing under the terms outlined in the contingency, you can withdraw from the deal and typically recover any earnest money deposit you’ve made. How does a mortgage contingency work?