Buying a house in WA: standard NWMLS agreement does not protect buyer when lender fails to perform

To protect yourself, add these clauses:
It is agreed between buyer and seller that:

  • If lender is unable to perform by the closing date, this agreement will terminate and earnest money will be refunded to buyer
  • Buyer will be given a 24 hour review period before signing any loan docs. If buyer is not given at least a 24 hour review period, buyer reserves the right to terminate this agreement, and get a refund of earnest money
  • If the conditions on loan docs differ by what is spelled out in the Good Faith Estimate (GFE), buyer reserves the right to terminate this agreement, and get a refund of earnest money
  • In case of a lawsuit, the prevailing party will be entitled to attorney fees

In addition use the neighborhood contingency to find a loan that meets your requirements.

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