How can you be sure you can get the necessary financing before going ahead with a home purchase. The answer is a contingent offer. Financial contingencies are common negotiations.
For example, you can agree to purchase the house you want contingent upon your obtaining a specified amount of financing. Naturally, the seller must agree to this contingency.
You will be asked to meet the terms of the contingency or eliminate it within a period of time. For instance, the seller may grant you thirty days to obtain a mortgage commitment. In the event you can’t obtain mortgage commitment, the contingency may require you to decide between purchasing the property for cash or voiding the transaction.
When a purchase agreement contains a mortgage contingency clause, the seller will often grant an additional period of time to close the transaction once the buyer obtains financing commitment.
Wednesday, September 22, 2010
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment