Buying a home is a big investment and there's no question to that. Yet, as a buyer, you can still do something to save up some money after having exhausted all your resources just to buy your dream home -- this is by waiving the contingencies. However, you need to know when is the right time to waive the contingencies, or else, you will be the one to be forfeited.
Here are situations that can help you decide whether or not waiving contingencies is a good move:
Early Move-in Contingency
Some buyers move earlier because of the delay of closings. The earlier the buyers move, the greater the risk of not getting the contingency waived. If you move in earlier, the seller would think that you are more than ready to close the deal, so when the deal doesn't push through, the seller might evict you and you will be given short-term living arrangement instead, as per advice of Rachel Stults of Realtor.com.
Home Inspection Contingency
If you have contingency for home inspection, you will have a licensed inspector to check your property every now and then. However, if you waive this and you find out that the house suddenly needs repair, you will lose your right to request for repairs or to flee before the deal closes. Realtor.com considers this as a crucial contingency as it is very scary to waive this because doing so might leave you stuck in a money pit.
Mortgage Contingency
This contingency is designed to protect the seller and the buyer from closing the deal without a proper loan, according to a separate from Realtor.com. The buyer is given time to get a loan to cover the mortgage but if he doesn't find one, he can choose not to pursue the deal and can get his down payment. Yet, if the buyer waives this contingency, the opposite can happen. He cannot get his down payment or deposit any longer.