Loan conditionally approved, can release contingency now?

Question

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.

Thanks

Account Closed · Answer

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.

Mark Hu · Answer

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.

Wayne Brooks · Answer

No need to remove it, simply notify the seller side you have loan approval, conditioned upon x,y,z.

Account Closed · Answer

@Mark Hu I have seen loans fall through before all of the conditions were cleared.