Mortgage Contingency Clauses

If you do not have the money to pay cash for a home, do NOT sign a real estate contract without a mortgage contingency clause.
Everyone seems to think it is their inalienable right to be lent huge sums of money! The fact is, you may be turned down for a loan. At the very least, you may be approved for less than you expect, a higher rate than you want, or it may take longer to get the loan than you anticipate. If there is no mortgage contingency clause in your real estate contract then you are still obligated to close on the property. If this happens you may lose your deposit.