Buying a high-value home with a jumbo loan, step by step
Step 6: making the offer
In brief
In a competitive market it is tempting to shorten or waive contingencies, but with a jumbo loan the appraisal and financing contingencies protect money you could lose if the loan falls through. A strong preapproval and a clear timeline often say more to a seller than a waived protection.
Last reviewed against the primary sources listed below.
Before you sign
- Know what each contingency protects.
- Confirm deadlines with your lender.
- Ask a real estate attorney or agent about local practice.
Buyer questions
Should I waive the appraisal contingency on a jumbo purchase?
Only if you could cover any gap between value and price in cash. Discuss the risk with your agent or attorney first.