What is a mortgage-contingency clause?
Mortgage contingency clause allows a buyer to back out of a real estate transaction if they can’t get financing. Going in, typically they’re going to get pre-qualified, meaning that the bank knows the buyer’s income, knows the credit score. What the big question mark is, what’s the property worth? It usually takes an appraisal, a couple weeks to come in. At that point, you will know if you have a mortgage commitment and whether the deal is binding.