Loan Contingency | Financing Contingency (2019)

Loan Contingency | Financing Contingency  (2019)

We are nearing the finish line, but what happens if you
can’t get that loan? If you get a loan for a home, you need to know what
is a loan contingency? When you’re buying the
home of your dreams, and you make an offer,
and the seller accepts it, we have a contract. In essence, you are saying to the seller, I really want your home,
I think I can get a loan, but I have to apply for the loan and go through that process. And, if I can’t get the
loan, mm I’m so sorry, but I’m not gonna be
able to buy your house. And, that’s what we call a
contingency, it’s a condition. During the loan contingency time, you start by submitting a loan
application to your lender and giving them all of
the backup documentation that they ask for. It’s gonna be things like
proving that you have income, telling them what your debt is, then checking out your credit history. And, they also have to check
into the history of the house, making sure that there
are no unusual loans or judgments against the house, and making sure that your
house is actually worth it, with the appraisal. Assuming that everything comes together, you’ll be able to get your loan. If, for some reason, your loan is denied, we have a couple of different
avenues that we can pursue. But, we have to make
sure that this is done in the loan contingency period. We can ask other banks for a loan, or, sometimes, you can
increase your down payment to get the loan. Another one might be tapping
into the bank of mom and dad or other family member
to solve our problems. But, if we do all of these things, and it’s still not
possible to get that loan, we’re gonna have to cancel
the contract on the house, and wait till maybe you’ve
saved up some more money, or you’ve gotten better credit, or, maybe we need to find
a less-expensive house that you can get a loan on. And, let me say again, all
of this needs to happen before the loan contingency period ends so that we can cancel, and get your earnest money deposit back if you can’t get the loan. I’m Casey Serafino-Lee,
your local Realtor, helping you LOVE where you LIVE by understanding the home-buying process.

4 thoughts on “Loan Contingency | Financing Contingency (2019)

  1. Really good & helpful info!

  2. Hey, this is really good. I also like your editing. That’s high tech

  3. You’re welcome

  4. Do YOU know how much money you can lose if you fail your loan contingency when buying a house? Comment Below 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *