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

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.

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HomeLight

JANUARY 13, 2022

If a contingency isn’t met, then buyers can back out of a deal without any repercussions and they can get their earnest money back. Common contingencies include issues with appraisals, home inspections, or the buyer’s home sale. How is an active contingent listing different from a pending listing? Appraisal contingencies.

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HomeLight

AUGUST 31, 2021

The lender usually also requires additional contingencies before they’ll approve the loan, such as an appraisal contingency to make sure the home is worth the amount they are loaning you to buy it, and an inspection contingency to see if there are any potential problems. There’s no financing contingency.

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HomeLight

NOVEMBER 29, 2021

When reviewing an incoming offer, you’ll take into consideration the overall offer terms, such as: the buyer’s ability to qualify for a home loan. inspection and loan contingency time frames. Schedule inspection appointments with the buyer. Renegotiate with the buyer’s agent based on inspection findings.

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HomeLight

MARCH 23, 2022

If you must include contingencies, such as a loan contingency or appraisal contingency to secure a mortgage, try to include as few as possible. Lead with your highest bid. In this market, Peterson hasn’t seen many counter-offers coming from sellers because many buyers are making offers over asking price.

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