| When making an offer on a house you want to buy, | | | | 3. Lead-based paint contingency - According to federal |
| you also include how much money you want to put | | | | laws, buyers are given 10 days to inspect the house |
| towards earnest money deposit. Let's say for | | | | for lead-based paint. House that were built prior to |
| example that you looked through North Park homes | | | | 1978 usually contain lead paint; an inspection will reveal |
| for sale to find your dream house. You finally settle for | | | | if this has been addressed or if the level is |
| a piece of North Park real estate and, with the help of | | | | unacceptably high. |
| your agent you decide to write an offer on it. Say you | | | | 4. Loan contingency - You probably approached a |
| decide to put $1000 in earnest money deposit. After | | | | seller with a preapproval letter, which is considered |
| the allotted period for inspections, if you want to walk | | | | standard when making an offer these days. However, |
| away from the purchase contract, the earnest money | | | | as you may already know, a preapproval letter is not |
| usually goes to the seller instead of going back to you. | | | | a sure, ironclad promise from the lender that you'll get |
| Typically, there are a lot of common contract | | | | the loan that you applied for. There are still possible |
| contingencies to prevent this from happening on | | | | reasons for your loan to be rejected even at the last |
| conditions that you feel should be an exception. You | | | | minute. It's best to include a contingency stipulating that |
| should never forget to make sure that these | | | | you can walk away with your earnest money should |
| contingencies are intact before you sign the contract. | | | | your application for a loan be rejected. |
| Here are a few of the most common contract | | | | There are a lot of other common contingencies that |
| contingencies: | | | | you may want to look into, depending on your situation. |
| 1. Appraisal contingency - This is in place so that should | | | | If you're in the process of selling your house as you |
| the lender give the house a low appraisal, you can | | | | are trying to close the purchase of a house, you can |
| walk away with your earnest money deposit. If the | | | | make the purchase contingent to whether you will be |
| appraisal is too low and you don't have the means to | | | | able to sell the house at a certain price, until a certain |
| make up for the difference, you may really need to | | | | date. |
| find a different house to buy. One that will have a | | | | During a buyer's market when more sellers are willing |
| better appraisal. | | | | to accommodate other contingencies, you may also |
| 2. Home inspection contingency - This is in place so | | | | like to put contingencies based on repairs or |
| that you can have the house inspected and should the | | | | improvements that you want done before you agree |
| house not pass inspection or if there are issues you | | | | to buy a house. As long as the seller agrees to it, then |
| find, you can issue a request for repair to the seller. | | | | this shouldn't be a problem. |