Our loan is 'conditionally' approved. So is it safe to remove the loan contingency in our escrow? Or not?! I know after contingency is removed our earnest money is toast.
@Mark Hu I have seen loans fall through before all of the conditions were cleared.
No need to remove it, simply notify the seller side you have loan approval, conditioned upon x,y,z.
Our agent now wants us to remove all contingencies except loan contingency. He says even though some repairs aren't done, even with removal of inspection contingency, once seller has agreed to do repairs in request for repairs they are almost always done eventually.
If you've agreed to repairs in writing, the seller has a legal obligation to complete the repairs prior to closing. I wouldn't worry too much about removing the inspection contingency, unless you feel more inspections are necessary. At least in Texas, the inspection contingency on a SF home goes away after the first 10 days or so of the contract and the seller has up until closing to complete any negotiated repairs. If they don't, the buyer doesn't close. Just be sure you ask for receipts and proof of repairs before you close... you might even do a re-inspect just prior to closing.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing