Today we’re going to talk all about financing contingencies. We’ll look at what they are, how they affect the transaction, and what can be done about them.
A financing contingency is a clause in a home purchase agreement that gives the buyers an opportunity to back out of the agreement if they don’t qualify for financing. A lot of things can affect a buyer’s ability to obtain financing, including excess debt and low credit.
You can’t get around a financing contingency.
How can you get around these contingencies? You can’t. Virtually 100% of the purchase agreements we see have that contingency in place. However, when our team buys a property, we don’t have a financing contingency and can buy the home free and clear.
If you have any questions for me about financing contingencies or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.