We answer frequently asked questions or FAQ about mortgage loans on Houston real estate and real estate in the surrounding communities of Greater Houston including Cypress, Katy, and College Station.
A financing contingency allows a buyer to terminate the purchase contract and receive a refund of their earnest money if the buyer is unable to obtain mortgage financing within a defined period of time. The contingency period is negotiated between the buyer and seller and usually lasts between 7 and 21 days. The buyer does not have to be disapproved for the mortgage, they only have to believe they will not be approved. The buyer must give written notice to the seller that they are terminating the contract under the financing contingency during the negotiated period. A financing contingency protects a buyer from losing their earnest money if they cannot obtain a mortgage loan on their home purchase.
One of the first steps in purchasing a home or real estate is to get a mortgage pre-approval letter from a bank, credit union or mortgage company. A mortgage pre-approval letter is customary when submitting an offer on real estate in Texas. Buyers can contact any mortgage lender and request a pre-approval letter. The lender will ask for income information for the applicant and will pull a consumer credit report on the applicant.
The pre-approval letter will state if the applicant is likely to be approved for a mortgage loan and the price of the home or real estate the borrower is qualified to purchase based on their credit and income. Mortgage pre-approvals are based on the applicants income a credit at the time of application and can be revoked or modified if their income or credit changes prior to closing. Sellers of real estate expect a pre-approval letter be submitted with all purchase offers and will generally not consider an offer without one.
Buyers can obtain a mortgage pre-approval letter from any mortgage lender they choose. Check out Mortgage Lender Directory for a list of lenders we have worked with.
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