Austin Real Estate Blog - Austin Housing Market Blog

A Financing Contingency, in basic terms, is a clause in the home Purchase & Sale Agreement which allows a homebuyer the time necessary to apply for, and obtain financing for a new home purchase.

Not all home financing contingencies are created equal however. Depending on the region and local real estate customs, such contingencies can vary greatly, particularly when non-MLS forms or addenda are used, or other local or state promulgated forms are not used - for example, when an attorney creates the contract, or when a home builder's purchase and sale contract is utilized instead.

Thus, it is critical for a home buyer to understand the precise meaning of the financing contingency, how it relates to ...

Be Cautious When Buying a New Car Before Applying for a Mortgage

It is quite often the case, where a prospective new homeowner also decides to purchase a new car before buying a home. I have worked with several Seattle area home buyers recently who needed to purchase a car before moving to a new state. I always caution home buyers about the potential pitfalls of buying a new car where it concerns their credit and debt to income ratios. Surprising to most, there can also be a hazards when paying off a car loan before applying for a mortgage.

There's plenty of online material to help you choose your optimal path, but this 3-minute piece from NBC's The Today Show serves as an excellent summary. In it, you'll learn about the basics of leasing a car, and for whom leasing can be a great fit. You'll also hear reasons to...