Contracts
A Washington buyer submits an offer with a 5-day financing contingency. The lender needs 15 days. The buyer should:
ASubmit the offer and hope the financing works out in 5 days
BRequest a financing contingency period that is realistic given the lender's timeline, such as 21 days✓ Correct
CWaive the financing contingency entirely to make the offer more competitive
DInclude the financing contingency but note the lender is 'working on it'
Explanation
Financing contingency periods should be realistic and sufficient to allow the lender to complete underwriting. An artificially short period risks having the contingency expire before financing is secured, potentially leaving the buyer at risk of losing their earnest money.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
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