Mortgage financing contingencies in your purchase contract.

In most purchase transactions there may be a slight
challenge or two, but most things will go quite smoothly.
However, you want to anticipate potential problems so that if
something does go wrong, you can cancel the contract
without penalty, and without losing your deposit money.
These are called "contingencies" and you must be sure to
include them when you offer to buy a home.

For example, some "move-up" buyers often agree to
purchase a home before selling their previous home. Even if
the home is already sold, it is probably a "pending sale" and
has not closed. Therefore, you should make closing your
own sale a condition of your offer. If you do not include this as
a contingency, you may find yourself making two mortgage
payments instead of one.

There are other common contingencies you should include
in your offer. Since you probably need a mortgage to buy the
home, a condition of your offer should be that you
successfully obtain suitable mortgage financing. Another
condition should be that the property appraises for at least
what you agreed to pay for it. During the escrow period you
are likely to require certain inspections, and another
contingency should be that it pass those inspections.

Basically, contingencies protect you in case you cannot
perform or choose not to perform on a promise to buy a
home. If you cancel a contract without having built-in
conditions and contingencies, you could find yourself
forfeiting your earnest money deposit.

Or worse.