What is a Finance Addendum? | Understanding Real Estate Contracts

We take a deep dive into what a finance addendum is and why it's a critical component of real estate contracts. A finance addendum outlines specific conditions related to financing, such as loan approval and interest rates, ensuring that both buyers and sellers are protected throughout the transaction. Whether you're a homebuyer trying to secure financing or a seller needing to understand the implications, knowing how this document works can make all the difference.

We'll cover key topics including:

What is a finance addendum?

How does it protect both the buyer and the seller?

What happens if financing falls through?

Common scenarios where a finance addendum comes into play.

Understanding the nuances of a finance addendum can save you from future headaches and ensure your real estate deal closes smoothly. If yo ...