Should I Waive My Mortgage Contingency?

Should I Waive My Mortgage Contingency?
Given the limited inventory of available houses in today’s market and the large number of eager buyers in Massachusetts, sellers may face as many as 10-15 offers, with each getting more competitive. Often the person who gets the home is the one who waives certain terms and contingencies in the offer, while going dollar-for-dollar with the highest bidder.Is waiving a contingency a mistake or is it a smart way to stay ahead of your competition? Like any action involving a risk, there are pros and cons to consider.

Waiving the Home Inspection. A seller may jump at the chance to accept an offer that has no inspection contingency. Although this practice is becoming more common in this seller’s market, there are far too many risks that would be revealed with a professional home inspection. Once it is waived, it essentially ends the negotiation with the seller and all you can do is keep your fingers crossed that the house is in as good condition as it looks. Of course, you could pay $400 – $700 for an inspection prior to purchase, but be warned: you may not win the bid and you’ll have paid to inspect someone else’s new home.

Waiving the Mortgage Contingency. Here’s one to avoid. You want this. A mortgage contingency protects your deposit in cases where you are no longer eligible for a mortgage (lost your job, change in finances, etc.). Another reason is tied to the bidding wars that occur due to lower inventory. Inflated bids move prices beyond the bank’s appraisal, which may force buyers to opt out of the deal. With the mortgage contingency waived, the buyer can lose the deposit.

The financials related to home-buying can be complex and confusing without an experienced mortgage professional. Call me at Westchester Mortgage today at 617-965-1236 to answer any questions you may have.

April’s Home Value Improver

What Exactly is Spring Cleaning?

It happens every year. The weather warms up and suddenly you notice the neighbors are on ladders cleaning gutters, washing windows and painting doors while others are inside cleaning out closets, dusting old bookshelves and scrubbing the floors on their hands and knees. What is it about spring cleaning that gets the job done better than any other time of year?

A little research shows that spring cleaning goes back for centuries and is often tied to religious holidays and celebrations.

In the Jewish faith, people would rid their kitchens and pantries of leavened bread and any ingredients that were not allowed during Passover. Even crumbs were forbidden, which led to a thorough cleaning of the home.

The Persian New Year, called Nowruz, involves a cleaning tradition called “khooneh tekouni” which means “shaking the tree” wherein the entire house is cleaned from top to bottom.

Christians, during Lent, clean their homes in anticipation of welcoming friends and relatives for their Easter celebration.

Finally, in the days before heating systems, people living in apartments waited until it was warm enough to open windows to wash them, along with beating the dust out of rugs and pouring old mop water out the window.

Whether your motivation is spiritual or simply practical, cleaning your house thoroughly will leave you appreciating your beautiful home even more, while giving you a wonderful feeling of accomplishment. Now break out the vacuum and get to work!