Mortgage Contingencies to Consider When Buying or Selling Your Stephenville Home

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Stephenville homesBuying a Stephenville home can be a stressful time, and there are some uncertainties that can pop up during the process. Adding contingency clauses to a home sale protects both the buyer and the seller from unknown and/or unforeseen factors. Detailing some conditions that must be met before the house is closed on can save everyone a hefty headache. Here are a few tips:

  • One contingency that protects a home buyer’s interest and is fairly common is a mortgage contingency. A mortgage contingency states that the home buyer will shop around for a specific kind of loan with a specific rate. If the home buyer does not find the type of loan they are looking for at the rate they have specified, they reserve the right to back out of the contract. This can save home buyers from financial distress by alleviating the need to rush to get a decent loan before closing. This also can prevent home buyers from going underwater on mortgages due to settling on a loan they didn’t want at a rate that was too high.
  • Mortgage contingencies protect a home seller’s interests as well, according to Scott Storace of Orange County Funding. Many mortgage contingencies state that if a home buyer doesn’t notify the home seller of their inability to find a mortgage by a specific date, they have to buy the home with or without financing. Often, in this case, the home seller will reserve the right to choose a mortgage for the home buyer. This ensures that the home buyer’s financial interests are looked after and their home is purchased as agreed upon so they don’t have to go through the selling process again after investing all of their time in this sale.
  • Other contingencies, such as appraisal and inspection contingencies, are often taken advantage of to make sure that the home buyer isn’t paying too much and the home seller isn’t accepting too little.

Contingencies in the home offer can be tricky to deal with. For clarification and help through the process, get in touch with us. We are qualified Stephenville, Texas real estate professionals and we are here to help you get you the best deal, whether you’re buying or selling.

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