Making an offer on your dream home is always exciting, but it can also be nerve-wracking if the sale depends on something out of your control. For instance, maybe you need to sell your current house, or you won’t be able to close until you can line up financing. To protect your interests and put conditions on the sale, most real estate attorneys encourage buyers to include contingencies in their purchase contracts.
3 Common Contingencies Buyers Should Consider
1. Inspection Contingencies
Most lenders require property inspections before issuing mortgages, so this contingency is usually included in a sales contract. Suppose, for example, that the home inspector finds major foundation issues or a leaking roof, or the mold inspector discovers an infestation inside the walls. The inspection contingency gives you leverage to renegotiate the price or just walk away without losing your money.
2. Financing Contingency
You might think that getting pre-approved guarantees you a mortgage, but it’s often just the beginning of a long, complex application process. A variety of issues could derail the application, including bank errors and problems with your financial documents. This is why real estate attorneys recommend protecting yourself with a financing contingency, which gives you the right to seek a mortgage elsewhere or back out of the deal if you can’t get a loan.
3. Home Sale Contingency
Buying and selling real estate at the same time is tricky. If you sell your house before buying another, you might have to live in an apartment for several months. On the other hand, if you buy another property first, you could be stuck making two mortgage payments until your old home sells. The home sale contingency gives you time to find a buyer, but bear in mind that sellers may pass up offers that include this provision.
If you’re buying a home anywhere in North Carolina’s Lee, Harnett, Chatham, and Moore counties, let Stephenson & Stephenson, PA prepare the contract and represent your interests. Their real estate attorneys have been serving buyers throughout the area since 1984, building their practice on ideals of integrity, dependability, and positive results. Visit their website for more on how they can help with your transaction, get updates and tips on Facebook, or call (919) 774-6182 to speak with a real estate attorney today.