WTF is a Mortgage Contingency?

Artwork by Katerina Limpitsouni

A financing contingency (aka mortgage contingency) is a clause in the contract of sale that gives buyers time to apply for and obtain financing. This clause can be used when a buyer needs to wait for approval from their lender before they can close on the purchase.

This clause in your purchase contract, accepted offer or real estate contract to buy house protects you as the home buyer. It provides you with an…