Financing contingency
A contract term that lets the buyer cancel without losing earnest money if they cannot get the loan described in the contract by a set date.
Also called: mortgage contingency, loan contingency
Related terms
A condition in the contract that must be met for the sale to go forward, such as an inspection, loan approval or appraisal. If it fails within the deadline, the buyer can usually cancel and keep the earnest money.
A lender's written statement that you qualify for a loan up to a certain amount after reviewing your credit, income and assets. Sellers usually expect one with an offer. Final approval still depends on the property and underwriting.
The lender's review of your income, assets, credit and the property to decide whether to approve the loan. The underwriter often asks for more documents before issuing final approval.
The underwriter's sign-off that all loan conditions are met and the loan can fund. It typically comes a few days before closing and triggers the final Closing Disclosure.
A deposit the buyer puts down after the offer is accepted to show they are serious. It is held in escrow or a trust account and usually goes toward the down payment or closing costs at closing.