Residential sales agreements
usually have clauses referred to as financing contingencies which allow the
buyers to declare the contract null and void if they are unable to obtain
financing. This may be the most important condition in your contract if you are
buying a home, so read the contract carefully before you sign it.
Most financing clauses set a time limit of from
30 to 45 days for obtaining a firm commitment from a lender. They may set
deadlines for applying for a loan, and require the buyer's full cooperation in
obtaining all the information needed to process your loan. If the loan is not
approved by the deadline, it may be necessary to request an extension from the
sellers or take specific steps to void the contract and get your deposit money
back. Be sure to note all of the financing deadlines in the contract, apply for
your loan as soon as possible, and be diligent about providing the lender with
any documents that are requested.