Do You Lose Earnest Money If Financing Falls Through

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Financing contingencies say that if your financing falls through, you still get your earnest money returned. Obviously, if you waive that you won’t get your money back. An inspection contingency states that if something major is found during the inspection you can walk away from the deal with your earnest money. Again, if you waive that.

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 · Not very often buyers ask if they lose earnest money in escrow if they will not close on time. Most of the time, they have an agreement to back it up. You don’t want to lose part of your nest egg because you made a wrong decision.

Earnest money proves you’re serious about making the purchase. You deposit the money in Earnest money is a better commitment than a handshake. Nick White/Digital Vision/Getty Images. Sometimes, if you can’t find financing or your market research indicates the business you want to buy.

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Earnest Money: What Happens When Your Home Purchase Falls Through. to Back Out of Purchase Agreements Without Losing Earnest Money. documents relating to the property, and – this is a big one – a loan contingency deadline.. that you will not automatically get earnest money if a buyer drops out, but you may.

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