Almost all home buyers take advantage of a mortgage or financing contingency these days. A mortgage contingency is a clause in a real estate purchase contract generally stating that if a buyer can't get a commitment of funding from a lender within a set period of time, the buyer can cancel the contract without penalty.
But what if you have a mortgage commitment and your lender becomes unable or unwilling to fund the loan at the time of closing? This is not an implausible scenario these days.
Home buyers and sellers should pay close attention to who is going to be funding the loan. Is it a reputable lender or a fly-by-night operation? Buyers should be sure to consult with their agent and attorney to insure they are protected from a lender who can't bring the money to the table.
Visit our Deerfield and Highland Park real estate office for expert buyer and seller representation.
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