How contingencies work when buying a home

On Behalf of | Aug 4, 2021 | Real Estate

There are a lot of moving parts involved when it comes to purchasing a home in Florida. Sometimes, you need certain circumstances to come together before you are able to move forward with buying a particular home. When this happens, you may need to make an offer on a contingent basis.

Per NerdWallet, putting in a contingent offer on a home means that you plan to buy the home as long as something specific comes to be first. There are a number of different contingencies you may need to use when you put in an offer on a home, and some of the more common types are as follows.

A mortgage contingency

Making a mortgage-contingent offer gives you something to fall back on if you do not receive funding for the home. You need to make a mortgage-contingent offer even if a lender has already preapproved you for a loan.

An inspection contingency

While a mortgage contingency gives you an out if you do not get a loan, an inspection contingency gives you an out if a home inspection reveals substantial defects in the home you want to buy.

A home sale contingency

Many buyers do not have enough money to buy a new home until they sell the one they have. If you fall under this umbrella, you may need to make an offer contingent on you selling your existing home first.

Contingencies help protect your interests during the home-buying process. While these are some of the more common contingencies you may need, this is not an exhaustive summary of all contingency types.