Can I wait to start the financing process until after the home inspection contingency has been resolved?


Can I wait to start the financing process until after the home inspection contingency has been resolved?
By Scott Rogers • July 5, 2013
In short, no. Virginia's standard Residential Contract of Purchase states the following in the FINANCING section.... Purchaser agrees to make written application for such financing or assumption (including the payment of any required application, credit, or appraisal fees) within five (5) business days of the date of acceptance of this Contract and to diligently pursue obtaining the Commitment. Later on in the FINANCING section, we find this.... The occurrence of any of the following shall constitute a default by Purchaser under this Contract [...] (i) Purchaser fails to make timely application for any financing provided for hereunder, or to diligently pursue obtaining such financing; Now, I can understand why a buyer would want to wait to apply for their loan until they knew that the home inspection contingency had been resolved, but that would likely delay the entire transaction. A home inspection is often not completed until 7 - 10 days after the contract is ratified, and then it might be another few days until the repairs negotiations are completed. That would then put you 10 - 13 days into the transaction before you had applied for financing. Not only would this be a default per the terms of the contract, this would also make you less likely to be able to obtain loan commitment by the deadline, which is often 30 days after the ratification of the contract. Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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