Making an Offer On a Home? Here's What You Need to Know About Home Buying Contingencies

Posted by Gary Ashton on August 14th, 2018

Buying a home can be complicated and time consuming. When making an offer on a home to buy, a contract to purchase is usually prepared. In addition to different types of mortgage and the amount of down payments, home buying contingencies are an important part of a home purchase agreement. Knowing what the contingencies are can help home buyers avoid problems during the home buying process.

Home Buying Contingencies Defined

The contract between a home buyer and home seller is called a home purchase agreement. A standard home purchase agreement contains clauses called "contingencies." The contingencies are protections for the home buyer. Each contingency allows the home buyer to usually cancel the home purchase agreement without financial…

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Do You Need to Pay Private Mortgage Insurance (PMI)?

Posted by Gary Ashton on August 7th, 2018

You want to buy a home but cannot afford to make a large down payment. Thankfully, potential buyers have options and may qualify for a home mortgage loan while putting down a small down payment. However, such a common situation does often come with strings attached.

Lenders want the security that comes along with borrowers investing in a home with a down payment of at least 20 percent. When this is not possible, they look for another way to protect the loans they are making. If a borrower cannot put at least 20 percent down, lenders consider these borrowers to be a higher risk. To protect this risk, lenders require borrowers to purchase Private Mortgage Insurance, or PMI.

For informational purposes only. Always consult with a licensed…

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