The finance contingency is a clause in the sales contract that stipulates you have x amount of time to do your due diligence for loan financing. If something falls through with the loan during the finance contingency , then you will receive your earnest money back. If the seller is notified outside of the finance contingency, then you can lose your earnest money deposit.
The finance contingency is negotiated by the selling and listing agents. Sometimes, the agent will ask the lender how much time is needed for the finance contingency and sometimes the agent does not. It is standard in Georgia to see a finance contingency of 21 days.; however, I like to see a finance contingency of at least 30 days. The 30 day period allows the Borrower to have plenty of time to do the home inspection, appraisal and gives the lender time to get the loan through Underwriting.
Another standard practice in Georgia is to waive the finance contingency when the home is being purchased with cash. It is never wise to waive the fiance contingency if you are borrowing money to purchase a home.
The finance contingency is negotiated by the selling and listing agents. Sometimes, the agent will ask the lender how much time is needed for the finance contingency and sometimes the agent does not. It is standard in Georgia to see a finance contingency of 21 days.; however, I like to see a finance contingency of at least 30 days. The 30 day period allows the Borrower to have plenty of time to do the home inspection, appraisal and gives the lender time to get the loan through Underwriting.
Another standard practice in Georgia is to waive the finance contingency when the home is being purchased with cash. It is never wise to waive the fiance contingency if you are borrowing money to purchase a home.