We understand how frustrating it can be to search for a home in Austin. Half the battle is learning the key terms and what they mean in regards to Texas real estate. So each week we bring you Key Term Tuesday – our way of helping you decode the industry jargon that keeps you from owning your home search.
What is a Financing Contingency?
Very simply a financing contingency makes the contract for sale conditional on the buyer’s loan approval. So if the buyer is unable to get a loan, they are no longer obligated to purchase the property under the terms of the contract.
If the buyer is unable to get financing during the time frame negotiated, they may cancel the contract and get their earnest money deposit back. Most commonly, we see this contingency used when credit approval is denied by the underwriter.
Obviously, financing is a key part of any non-cash transaction so including a financing contingency is essential. We also recommend that all of our buyers receive pre-approval from a local lender to demonstrate to the seller that they are serious about buying a home.
Looking for a Real Estate Expert?
Our team has a combined 55+ years of experience helping home buyers understand the r. Check out our approach to Buying a Home in Austin to learn more about our team and how we work. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation.