MORTGAGE FINANCING ISSUES

The last critical factor of the Offer to Purchase is the Buyer’s mortgage financing. The mortgage financing contingency is designed to protect the Buyer’s deposit if he or she cannot obtain mortgage financing by a particular date. The standard provision in a residential Purchase and Sale Agreement is for financing of no more than 80% of the purchase price. It is always in the Buyer’s interest to negotiate the latest possible contingency deadline date to notify the Seller. Home Sellers will want to keep this notice date to as short a period as possible in case the deal falls through and they need to place the home back on the market.