Common use of LOAN CONTINGENCY Clause in Contracts

LOAN CONTINGENCY. This contract is contingent upon Purchaser obtaining a loan. Purchaser agrees to apply for loan within five (5) days of the effective date of this contract. Purchaser agrees to execute all necessary forms and/or legal instruments required by Lending Institution and/or Seller. Xxxxxxxxx agrees to act in good faith and use diligence in attempting to obtain loan approval and understands and agrees that failure to do so shall constitute default and entitle Seller to retain all monies previously paid to Seller as liquidated damages. If a loan contingency applies, Purchaser shall forfeit xxxxxxx money in the event that he/she/they willingly make a job or career change or make any major purchases, or make any other purposeful financial decisions that would adversely affect his/her/their ability to maintain loan approval status and prevent the consummation of this agreement.