What does it mean to have a Loan or Financing Contingency?

Mortgage and Lending with 214-728-0449 http://TexasLoanGuy.com NMLS # 322646

Loan or Financing Contingency

Loan contingency is the period of time the seller is giving you to obtain full, formal loan approval. It is important to include a financing contingency in your offer, as it makes the transaction dependent on you receiving the mortgage you've applied for. It specifies your cancellation rights if you are unable to obtain financing.


This contingency is typically between 15 and 30 days depending on what has been negotiated in the contract. The earnest money deposit you make at the time the offer is accepted will be put in jeopardy once the contingency for the loan has expired. In fact, pursuant to the terms of the contract, if the loan contingency expires and you fail to close the purchase transaction, you could lose your earnest money deposit and not have the failure of obtaining loan approval to lean on as an excuse. Written pre-approval will help to eliminate problems in this area.


Please note: pre-approval is not the same as pre-qualification. Also, be sure to read about what a mortgage lender is looking for when reviewing your mortgage loan application.

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Are you looking to purchase a Texas home?  Perhaps you love your Texas home but would be interested in refinancing your Texas mortgage to a lower interest rate?  

I'll help you get pre-approved for your Texas home loan and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice.  If you are available to talk, I am available to listen.  Give me a call or visit my website for more details.

Do you want to know all of your mortgage options? Call me today and let's discuss them further.

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John R Cannata    P#214.728.0449

NMLS # 322646

Texas Home Loan Expert

Frisco TX Mortgage



The views expressed on this site are mine alone and do not reflect the views of my employer.


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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

This is good information for consumers. Thank you for the post.

May 22, 2011 10:51 PM #1
Wale Adewoyin
1st Crown Realty Corporation 503-512-6200 - Saint Helens, OR

With the vagaries in the market and restrictive underwrittings guidelines the contingencies give the seeler the option to move on tho the next buyer. I wish those were more buyer friendly.

May 22, 2011 10:53 PM #2
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

Good morning, John. It has been awhile since I have seen you. Let's not be a stranger...

May 22, 2011 11:03 PM #3
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Gita - Thanks!

1st Crown - Especially with the guidelines today, its important for the buyer to know where they stand.

Michael - It has been quite some time. Been a little busy, but Im hoping that I'll be more consistent.

May 22, 2011 11:14 PM #4
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL

John - Great explanation of what a loan contingency is.  The average in my area is 30 days, which usually takes buyers right up to closing.

May 23, 2011 06:01 AM #5
Mike Yeo
3:16 team REALTY - Frisco, TX

Great explanation and a great education for consumer.

May 23, 2011 08:12 AM #6
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Michelle - 30 days really should allow plenty of time for any hiccups. The average I see is around 14-15 days.

Thank you Mike!

May 23, 2011 08:26 AM #7
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Texas Home Mortgage - Purchase or Refinance
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