What is a loan contingency?
The loan contingency gives the buyer peace of mind of knowing they can get full underwriter approval before removing the contingency. The loan approval process at times can consist of a rigorous underwriting and document gathering and may be quite time consuming. The time needed for the loan contingency period is usually about 21 days but may be more or less depending on the lender and the lending market. Be sure to check with the lender to ensure proper expectations and to avoid issues while you are in escrow.