Finding a home for your family is an important step in everyone’s life.  Finding a home for your career is just as important. 

Finding the best option that is most suited to your financial goals is the highest priority at PrimeLending. 

Contingencies in a Purchase Offer
Most purchase transactions go through with no trouble except for only an occasional challenge or two.  It is wise, however, to be prepared for potential problems in case something does go wrong.  You need conditions to list that will allow you as the buyer are able to cancel the contract without penalty if they can't be met.  These are called "contingencies," and they must be included when you make an offer to buy a home.

Contingencies are appropriate in a number of circumstances.  One example is when a buyer agrees to buy a house before selling their previous home. While the home may be already under contract, the sale is most likely pending and has not closed.  Therefore, it is wise to have a condition of your offer be the closing of your own sale.  You may be responsible for two mortgage payments if you do not include this contingency.

Another condition of your offer should be that you successfully gain adequate financing if you require a mortgage to purchase the home.  Another contingency should be that the property appraise for at least the sale price.  An additional condition should be that the house passes all inspections commonly conducted during the inspection period. 

Contingencies protect you in situations where you are unable to carry out or decide not to carry out an offer to purchase a house.  Without contingencies and built-in conditions, canceling a contract will result in the forfeiting of your earnest money deposit.