Скачать с ютуб The Financing Contingency in NYC Explained в хорошем качестве

The Financing Contingency in NYC Explained

The Financing Contingency Explained: https://www.hauseit.com/financing-con... Reduce Your Buyer Closing Costs in NYC: https://www.hauseit.com/hauseit-buyer... The financing contingency is often misunderstood. The financing contingency is actually a rather broad term for a contract contingency that can include many negotiable parts, such as an appraisal contingency or minimum loan amount contingency. It’s important to understand that while a financing contingency is often asked for during the offer negotiation stage, it is fleshed out in more detail during the contract review stage between the lawyers. What Is the Financing Contingency? The financing contingency is a contract contingency that allows a home buyer a certain amount of time post contract execution to secure a loan commitment letter. If the buyer makes a bona fide effort yet still fails to secure a financing commitment from a lender, the buyer is allowed to cancel the contract and walk away with their earnest money check. Because the financing contingency is a contract contingency, it only takes effect after a listing is in contract. This means that the financing contingency offers protections to the buyer after a purchase contract has been fully executed. Essentially, a financing contingency provides the buyer with a way out of the contract in case he or she is not able to secure a financing commitment letter, typically within 30 to 45 days after contract execution. Is a No Financing Contingency Offer Better? A no financing contingency offer is certainly more attractive for sellers, but is less advantageous for buyers. Having no loan contingency means a greater certainty of close in the eyes of the seller, which equates a non-contingent offer utilizing financing to that of an all cash offer. Of course, all cash offers are still the best because they are faster to close due to not having to wait around for a bank to fund a loan. However, no loan contingency isn’t so great for a buyer that actually needs a loan to be able to close. If the buyer doesn’t have backup funds to cover the entire purchase plus closing costs in case he or she doesn’t get funded, then he or she risks having to default on the contract and losing his or her contract deposit! What Are the Standard Offer Contingencies in NYC? The most common and really only “standard” offer contingency in NYC is the financing contingency. This financing contingency is typically requested within the offer email that the buyer’s agent sends to the listing agent. Is the Financing Contingency Also a Funding Contingency? No. A funding contingency allows a buyer to cancel a contract if he or she is unable to obtain funding to complete the purchase. A funding contingency essentially protects a buyer if the bank pulls its lending commitment before closing. For example, a loan commitment letter will have a number of contingencies and conditions that must be satisfied prior and up to closing. For example, the lender will usually call the HR department of the borrower’s company to verify employment status a couple of days before closing. If the borrower has lost his or her job in the interim, then this will be a condition that will cause the lender to renege on their lending commitment. A funding contingency can protect against this so called “funding gap” risk. Buying a home? Learn more about how you can save $20,000 or more on your purchase with a Hauseit Buyer Closing Credit at www.hauseit.com Save Money with a Hauseit Buyer Closing Credit: https://www.hauseit.com/hauseit-buyer... #hauseit #hauseitnyc https://www.hauseit.com