Contract Contingent on Buyer Qualifying for Financing

Question: My husband and I signed an offer to buy a home in east Mesa, but the seller wants $30,000 earnest money. If we don’t qualify for the mortgage, will we lose our $30,000 earnest money?

Answer: Probably not. Under the standard AAR purchase contract, the purchase of the home is contingent on the buyer qualifying for the mortgage. Two other important contingencies in the purchase contract are the approval of the title report and the approval of the home inspection by the buyer. Bottom line: If you do not qualify for financing, or approve the title report, or approve the home inspection, the $30,000 earnest money deposit should be returned to you.

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