Financing Contingency

Financing Contingency

A contractual term – a contingency – that requires a buyer to secure financing before the contract becomes binding.  So if the buyer’s financing fails, the buyer gets the Earnest Money back. However, most contracts require the Buyer to take certain steps in order to retain this protection, such as applying within a certain number of days of contract and having the downpayment funds on hand. Read the contract carefully to make sure you comply with the requirements - or you will waive this protection.