Most buyers take out a mortgage when they buy a home.
So most purchase contracts include a financing contingency that lets the buyers out of the contract if they are unable to get a mortgage. If this information is provided and if you make a good-faith effort to get a loan on the specified terms but you're turned down, you usually have a legitimate way out of the contract. The financing contingency should also include a time period for the loan to be approved. A customary time frame for loan approval is 30 days from acceptance of the purchase contract. However, with computerized loan origination, some mortgages can be approved more quickly.