If, it turns out, that you cannot obtain the mortgage within that time frame, sometimes the sellers are allowed either to obtain one for you (if they can), or act as the bank and give you a loan themselves, using the parameters you set up. Now that does NOT mean, if you can't get a mortgage with a 5% rate... it specifically means you can't get approved for the rates you wrote into the contract. Nor does it mean, that you qualify, but now you're suddenly scared that the payment is more than you can handle.
If they opt not to find one for you, or carry the paper themselves, then you are released from the contract with the full return of your earnest money.
OBJECTIVE REAL ESTATE
6399 WILSHIRE BLVD SUITE 908
LOS ANGELES, CA, 90048