Let's say your purchase offer has been accepted on a home.
The contract states you have 18 days to remove your loan contingency.
Day 18 comes, and your lender says he needs 5 more days to get some paperwork back from your employer verifying employment.
Guess what?!
The seller does not have to grant that extension.
They could say "nope, sorry, either remove your loan contingency or we will cancel escrow.”
What do you do now?!
You could remove the loan contingency and hope the lender comes through (very risky), or you can cancel escrow and lose out on the house.
This is why it is very important to get your purchase terms right in your initial offer and keep the lender to their word.
If the lender says 18 days, then you better be prepared to remove your loan contingency in 18 days!
