A financing contingency lets you exit the contract and protect your deposit if your loan falls through. It only works if you meet the deadlines.
What the standard Northern Virginia contract says
- You must apply for financing within seven days after ratification.
- The financing deadline is a date the two sides fill in. You must deliver your lender’s written commitment by 9 p.m. that day.
- The form offers two versions. With an extension, the seller can give notice after the deadline and you then have three days to void. With an expiration, the contingency simply ends at the deadline.
How you use it
If the lender rejects your loan, you generally deliver written notice with the rejection before the contingency is satisfied or removed. Send it through your agent and keep proof.
What puts you at risk
- Missing the deadline. The protection ends.
- Failing to settle for any reason other than the seller’s default. You may be in default and risk your deposit. See earnest money at risk.
How to protect yourself
- Get pre-approved before you write an offer.
- Apply right after ratification and answer lender requests fast.
- Calendar every deadline from the ratification date.
Part of our guide to making an offer in Virginia.
Talk to Glenn and Gift before you sign
Questions about your offer or contract? Call 703-707-0334 or send us your question.
General information for Northern Virginia buyers, not legal advice. Forms are updated from time to time. Your contract controls, so read it and ask before you act.
