Dear Barb,
OMG NO!!!!! Never, ever, never, remove your mortgage loan contingency completely from the contract!
Now that hopefully I have your attention, here's why:

Even if you have obtained your Mortage Commitment in advance (a very smart thing to do) and there are very limited conditions to be cleared before closing there are other considerations. What if.... you lose your job, the lender goes out of business, etc. etc.? Any good attorney will tell you the same thing. The last thing you want is to get involved in litigation to get your downpayment returned if your financing falls through. So, if you insist on making your offer more enticing to the seller, which I assume is why you would want to do this in the first place, there is conservative way to accomplish this. I saw an attorney protect a buyer's best interests by waiving the contingecy period at the time of signing contract but attaching a copy of the Mortgage Commitment that the contract then became subject to. That way, if the buyer's worst nightmare came true such as job loss or the lender going under, they were fully protected.

Good luck with your transaction and keep asking good questions!
Regards,
Deborah Endres Camacho
...For all your real estate needs
NMLS Mortgage Originator 20+ years of experience
MORTGAGE ACCESS CORP.
National Direct Lender with HQ in Morris Plains, NJ

Phone: 914-629-5661
Email: DCamacho@moacc.com
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Referrals always accepted and greatly appreciated.

Hi Barb, unless you are paying in cash, you should absolutely have a loan contingency period! Depending on your circumstances there is also an option to have a loan contingency that remains until the loan is funded. Discuss this subject with your Realtor, and don't be afraid to keep asking "why?" until you are satisfied that you understand and agree with whatever is being proposed.

Best, Steve

Unless you are putting down a lot of cash or paying all cash, a loan contingency in your purchase offer is a very important part. the credit markets are so tight these days, that even people who are pre-approved for a loan sometimes can't get financing for one reason or another. You need the loan contingency to protetct your earnest money deposit.

Hello Barb,

Yes, there should be a loan contingency in the offer. Most offers have a 17 day inspection time frame to investigate everything you can about the property. You can have a Physical inspection, check permits, hire contractors, check out the neighborhood, schools , get an appraisal, etc. On the 18th day there is a contingency removal form that the listing agent will ask you to sign stating that you are satisfied with the property and are proceeding forward. Once you sign the contingency form your earnest money deposit is more at risk if you "don't " complete the sale. It is best to always get qualified through a lender, prior to looking for your new home, which we can help you with that as well as many other items.
Barbara Hunt
CENTURY 21 Award
760 737-3757