We discussed the details of what the financing contingency are in the Financing Contingency section of this buyers guide.  At this point we are about 21 days or so into the contract from the binding agreement date and our financing contingency will be expiring.  We must ensure at this point that we have a full loan commitment from your lender stating that you have been granted the loan on this property without exception.  If we don’t have that from your lender we need to understand what is holding things up and either have the lender write a declination letter for the loan stating that through no fault of the borrower (buyer) they are unable to grant you the loan so that we can terminate the contract and get your earnest money back.  If this contingency expires and we for any reason are not granted the loan, you will not be able to purchase the home and will lose your earnest money and may be open to other legal ramifications.

Sometimes, if the lender is just being slow and is sure that the loan will go through, we will ask the lender to speak to the listing agent or the seller to assure them that all is well and that the will be all set for closing, and we will then ask the seller to grant us an extension to the financing contingency period so that you as the buyer are protected.  Hopefully it doesn’t come to this, but if it does, your agent will advise you on what needs to be done in order to protect you and your earnest money.