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When to Sign Loan Contingencies!

By
Real Estate Agent with Casta del Sol Real Estate / HomeSmart Everygreen Realty 01439520

Things are different now. Remember when you filled out the purchase contract, there is that little box for the loan contingency and we would let the standard 17 days for loan approval just ride. You knew there would be no problem. The bank said sure and they meant it. It was something we didn't worry about for years.  We had the client sign off before the close or before funding was done, NOT any more. Now it has to be a concern for everyone in the transaction that we wait.

Until funding is done, the banks can change the requirements any time they feel like it and your client may not still qualify. Be safe don't sign off on the loan contingencies till the end, it could cost your client their deposit.

Posted by

Valorie Stover , Specializing in YOU!

Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

The landscape is certainly different. As agents we really need to do thorough research and protect our clients more than ever.

Mar 04, 2009 10:28 AM