When you are financing a home, the preferred option for securing the financing contingency is through a “Written Statement” deadline. This is essentially a letter from the lender stating a satisfactory appraisal has been completed and financing has been approved for the purchase of the specified property.
It goes on to say…
Upon delivery of the Written Statement, if this Purchase Agreement does not close on the stated closing date for ANY REASON relating to financing, including, but not limited to interest rate and discount points, if any, then Seller may, at Seller’s option, declare this Purchase Agreement canceled, in which case this Purchase Agreement is canceled. If Seller declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid here to be forfeited to Seller as liquidated damages.
The Written Statement is usually due the week before closing, indicating the buyers are ready to close. This is important for the seller, because they are assured financing won’t fall apart at the last minute. It is important for the buyer to be aware this means they can’t cancel the agreement for any reason without losing their earnest money.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
