If I can’t get a loan, do I get my money back?
Sally, from Barrington

Most likely- YES; however, it depends on the details of the contract.
When a purchaser goes under contract on a home, he or she will typically have a mortgage contingency. This contingency is usually a period of 30-45 days whereby the purchaser must secure financing from a lender. If the purchaser cannot get a loan , the seller does have the right to try to get the buyer a loan. If all fails at the end of the mortgage contingency, the purchaser will get their earnest money back. By the way, if this deadline passes with no correspondence from purchaser’s attorney to the seller or seller’s attorney, the buyer is at risk of losing his/her earnest money. In most cases, the purchaser’s realtor and attorney keep a close watch on this contingency period so the purchaser is not at risk of losing any money. Lastly, if there is no mortgage contingency (cash deal) in the contract and the purchaser cannot get a loan, he or she is at risk of losing earnest money.

Julie Varones