If a buyer cannot secure a loan and wishes to exit an existing contract, what should they do?

The appropriate course of action for a buyer who cannot secure a loan and wishes to exit an existing contract is to seek a mutual agreement with the seller. This approach is grounded in the principles of negotiation and professionalism in real estate transactions.

When a buyer is unable to obtain financing, communication with the seller is crucial. By seeking a mutual agreement, the buyer opens a dialogue to discuss the situation with the seller, which could potentially lead to a resolution that satisfies both parties. This could involve negotiating an extension for the loan approval process, modifying the terms of the contract, or even terminating the agreement amicably without causing friction.

This approach promotes goodwill and can help maintain a positive relationship between the buyer and seller, even if the transaction ultimately does not proceed. Working together to find a solution is often preferable and more beneficial in the long run than attempting to unilaterally cancel the contract or jump straight to looking for new funding options.