💰 Financing Forms - Every Step You Need Take

Great agents know that the real value they bring to a transaction isn’t just writing the offer — it’s guiding their clients through everything that happens after the contract is signed.

Once a purchase agreement becomes binding, the financing exhibit attached to the contract sets an entire process in motion. Whether the buyer is using a conventional loan, FHA, VA, USDA financing, or purchasing without a financing contingency, the forms create a series of steps, timelines, and decision points that unfold throughout the transaction.

For agents who want to stand out, understanding this timeline is powerful. It allows you to anticipate what comes next, prepare your clients for the decisions and actions ahead, and keep the deal moving smoothly from the Binding Agreement Date all the way to closing.

Think of the financing exhibit as more than just a contingency — it is a transaction roadmap.

Along the way there are important moments, including:

• Applying for the loan and communicating with the lender

• Monitoring the financing contingency period

• Handling appraisal issues

• Providing evidence of the ability to close

• Navigating special situations like condominium project approval or master insurance policies

When agents understand these steps clearly, they can guide buyers and sellers with confidence and create a smoother experience for everyone involved.

In the sections that follow, we will break down the major Georgia financing exhibits and walk through the step-by-step actions for both buyers and sellers, so you can see exactly how the process unfolds under each form.

Many of the requirements apply to all of the financing forms but were included in each section so that each is a complete list of action steps.

☑ F404 – Conventional Loan Contingency

Buyer Actions

Immediately After Binding Agreement Date

1. Promptly apply for the conventional loan (not FHA, VA, USDA or private / hard money lending) described in the exhibit:

• Loan amount (% of purchase price)

• Term

• Interest rate cap - any rate at or below the rate listed in the exhibit

• Rate type (fixed, adjustable, interest only)

2. Apply with any lender or with the Approved Lender if one is listed.

3. Begin submitting all required loan documentation to lender.

Early Loan Process

4. When Buyer sends a Notice of Intent to Proceed with a lender, Buyer must:

• Notify Seller

• Provide lender name and contact information.

📑 Use the F816 Notice: Buyer hereby gives Notice to Seller that Buyer has sent Notice of Intent to Proceeds to [John Smith at ABC Mortgage Company, 555-555-5555].

During Financing Contingency Period

5. Work with lender to obtain underwriting approval.

6. Provide lender with all Required Information, including:

• Financial documentation

• Loan paperwork

• Property reports required by lender

• Any additional underwriting documentation.

If Buyer Cannot Obtain Loan

7. Buyer must terminate before the financing contingency expires.

8. Within 7 days of notice, Buyer must deliver:

• The denial cannot be based solely on:

1️⃣ Buyer lacks sufficient funds to close

2️⃣ Buyer has not sold or leased property (since this would be included as a separate contingency)

3️⃣ Buyer failing to provide information information to the lender timely

4️⃣ Buyer buying things that hurt their debt-to-income ratio

5️⃣ The property not appraising

6️⃣ The lender not completing underwriting

Appraisal Situation

9. If property appraises below purchase price and appraisal contingency exists:

• Buyer may request a price reduction within the time stated by sending the Seller the Appraisal and the F713 Amendment to Purchase Price.

• Follow the timeline for Seller and Buyer negotiation.

• This contingency DOES NOT protect the Buyer if the appraisal is not received. It only protects the Buyer if there is an appraisal and the property appraised from less than the Purchase Price.

Condo / Master Insurance Projects

10. If lender cannot obtain project approval, Buyer may:

• Terminate the contract. but must provide a letter from the lender explaining approval failure.

• This protection does not expire with the financing contingency. It lasts until closing.

After Financing Contingency Ends

11. If Seller requests proof of ability to close:

• Buyer must provide evidence within 5 days, but has 2 days to cure their default if they miss the deadline.

• Evidence is a loan commitment letter with the loan type, loan amount, loan terms and all conditions necessary to find the loan.

Authorization

12. Buyer authorizes lender communication with Seller and Brokers about:

• Loan status

• Financial ability

• Conditions remaining

• Basis of loan denial

Seller Actions

If Buyer Terminates Due to Loan Denial

1. Review Loan Denial Letter for validity.

• Seller may dispute if denial is based on prohibited reasons.

• Seller may dispute if the denial is not for the loan and loan terms described in the exhibit.

After Financing Contingency Ends

2. Seller may request Evidence of Buyer’s Ability to Close.

• Seller will use the F816 Notice: Seller hereby requests Evidence per paragraph 10 of the Conventional Loan Contingency.

• Buyer then has 5 days to produce Evidence.

• If Buyer fails to provide Evidence, Seller must send Notice and allow 2 days to cure. Seller would use the F816 Notice: Seller hereby notifies Buyer that they are default. Buyer has 2 days to cure their default.

• If Buyer does not cure their default, Seller may terminate within 7 days or until closing, whichever is less. Seller would have the right to the Earnest Money as a remedy for the Buyer default.

Condo / Project Approval Situations

3. If lender cannot approve project insurance/development:

• Buyer may terminate with lender letter.

• This Buyer protection lasts until closing. The best way to prevent this from affecting a closing is to make sure the condo or master insurance policy will qualify for financing during the listing. This includes: the insurance coverage amount, the insurance deductible amount, condo association reserves, and deferred maintenance.

☑ 407 – FHA Loan Contingency

Buyer Actions

Immediately After Binding Agreement Date

1. Promptly apply for the FHA loan described in the exhibit:

• Loan amount (% of purchase price)

• Term

• Interest rate cap - any rate at or below the rate listed in the exhibit

• Rate type (fixed, adjustable, interest only)

2. Apply with any lender or with the Approved Lender if one is listed.

3. Begin submitting all required loan documentation to lender.

Early Loan Process

4. When Buyer sends a Notice of Intent to Proceed with a lender, Buyer must:

• Notify Seller

• Provide lender name and contact information.

📑 Use the F816 Notice: Buyer hereby gives Notice to Seller that Buyer has sent Notice of Intent to Proceeds to [John Smith at ABC Mortgage Company, 555-555-5555].

During Financing Contingency Period

5. Work with lender to obtain underwriting approval.

6. Provide lender with all Required Information, including:

• Financial documentation

• Loan paperwork

• Property reports required by lender

• Any additional underwriting documentation.

If Buyer Cannot Obtain Loan

7. Buyer must terminate before the financing contingency expires.

8. Within 7 days of notice, Buyer must deliver:

• The denial cannot be based solely on:

1️⃣ Buyer lacks sufficient funds to close

2️⃣ Buyer has not sold or leased property (since this would be included as a separate contingency)

3️⃣ Buyer failing to provide information information to the lender timely

4️⃣ Buyer buying things that hurt their debt-to-income ratio

5️⃣ The lender not completing underwriting

6️⃣ Not meeting the occupancy requirements

Appraisal Situation

9. If property appraises below purchase price and appraisal contingency exists:

• Buyer may request a price reduction within 3 days of receiving the Federal Housing Commissioner or a Direct Endorsement Lender setting forth the Minimum Appraised Value by sending this document and the F713 Amendment to Purchase Price to the Seller.

• Follow the timeline for Seller and Buyer negotiation.

• This contingency DOES NOT protect the Buyer if the appraisal is not received. It only protects the Buyer if there is an appraisal and the property appraised from less than the Purchase Price.

• The Buyer waives their rights under the Amendatory Clause if they do not timely request a price reduction under this Agreement to Seek Amendment to Purchase Price Prior to Termination clause in the exhibit.

Condo / Master Insurance Projects

10. If lender cannot obtain project approval, Buyer may:

• Terminate the contract. but must provide a letter from the lender explaining approval failure.

• This protection does not expire with the financing contingency. It lasts until closing.

After Financing Contingency Ends

11. If Seller requests proof of ability to close:

• Buyer must provide evidence within 5 days, but has 2 days to cure their default if they miss the deadline.

• Evidence is a loan commitment letter with the loan type, loan amount, loan terms and all conditions necessary to find the loan.

Authorization

12. Buyer authorizes lender communication with Seller and Brokers about:

• Loan status

• Financial ability

• Conditions remaining

• Basis of loan denial

Seller Actions

If Buyer Terminates Due to Loan Denial

1. Review Loan Denial Letter for validity.

• Seller may dispute if denial is based on prohibited reasons.

• Seller may dispute if the denial is not for the loan and loan terms described in the exhibit.

After Financing Contingency Ends

2. Seller may request Evidence of Buyer’s Ability to Close.

• Seller will use the F816 Notice: Seller hereby requests Evidence per paragraph 9 of the FHA Loan Contingency.

• Buyer then has 5 days to produce Evidence.

• If Buyer fails to provide Evidence, Seller must send Notice and allow 2 days to cure. Seller would use the F816 Notice: Seller hereby notifies Buyer that they are default. Buyer has 2 days to cure their default.

• If Buyer does not cure their default, Seller may terminate within 7 days or until closing, whichever is less. Seller would have the right to the Earnest Money as a remedy for the Buyer default.

Condo / Project Approval Situations

3. If lender cannot approve project insurance/development:

• Buyer may terminate with lender letter.

• This Buyer protection lasts until closing. The best way to prevent this from affecting a closing is to make sure the condo or master insurance policy will qualify for financing during the listing. This includes: the insurance coverage amount, the insurance deductible amount, condo association reserves, and deferred maintenance.

Home Warranty Requirement for Homes Less Than 1 Year Old

4. Seller is required to provide a home warranty acceptable to the lender.

☑ 410 – VA Loan Contingency

Buyer Actions

Immediately After Binding Agreement Date

1. Promptly apply for the VA loan described in the exhibit:

• Loan amount (% of purchase price)

• Term

• Interest rate cap - any rate at or below the rate listed in the exhibit

• Rate type (fixed, adjustable, interest only)

2. Apply with any lender or with the Approved Lender if one is listed.

3. Begin submitting all required loan documentation to lender.

Early Loan Process

4. When Buyer sends a Notice of Intent to Proceed with a lender, Buyer must:

• Notify Seller

• Provide lender name and contact information.

📑 Use the F816 Notice: Buyer hereby gives Notice to Seller that Buyer has sent Notice of Intent to Proceeds to [John Smith at ABC Mortgage Company, 555-555-5555].

During Financing Contingency Period

5. Work with lender to obtain underwriting approval.

6. Provide lender with all Required Information, including:

• Financial documentation

• Loan paperwork

• Property reports required by lender

• Any additional underwriting documentation.

If Buyer Cannot Obtain Loan

7. Buyer must terminate before the financing contingency expires.

8. Within 7 days of notice, Buyer must deliver:

• The denial cannot be based solely on:

1️⃣ Buyer lacks sufficient funds to close

2️⃣ Buyer has not sold or leased property (since this would be included as a separate contingency)

3️⃣ Buyer failing to provide information information to the lender timely

4️⃣ Buyer buying things that hurt their debt-to-income ratio

5️⃣ The lender not completing underwriting

6️⃣ Not meeting the occupancy requirements

Appraisal Situation

9. If property appraises below purchase price and appraisal contingency exists:

• Buyer may request a price reduction within 3 days of receiving the VA Notice of Value by sending this document and the F713 Amendment to Purchase Price to the Seller.

• Follow the timeline for Seller and Buyer negotiation.

• This contingency DOES NOT protect the Buyer if the appraisal is not received. It only protects the Buyer if there is an appraisal and the property appraised from less than the Purchase Price.

• The Buyer waives their rights under the Amendatory Clause if they do not timely request a price reduction under this Agreement to Seek Amendment to Purchase Price Prior to Termination clause in the exhibit.

Condo / Master Insurance Projects

10. If lender cannot obtain project approval, Buyer may:

• Terminate the contract. but must provide a letter from the lender explaining approval failure.

• This protection does not expire with the financing contingency. It lasts until closing.

After Financing Contingency Ends

11. If Seller requests proof of ability to close:

• Buyer must provide evidence within 5 days, but has 2 days to cure their default if they miss the deadline.

• Evidence is a loan commitment letter with the loan type, loan amount, loan terms and all conditions necessary to find the loan.

Authorization

12. Buyer authorizes lender communication with Seller and Brokers about:

• Loan status

• Financial ability

• Conditions remaining

• Basis of loan denial

Seller Actions

If Buyer Terminates Due to Loan Denial

1. Review Loan Denial Letter for validity.

• Seller may dispute if denial is based on prohibited reasons.

• Seller may dispute if the denial is not for the loan and loan terms described in the exhibit.

After Financing Contingency Ends

2. Seller may request Evidence of Buyer’s Ability to Close.

• Seller will use the F816 Notice: Seller hereby requests Evidence per paragraph 9 of the VA Loan Contingency.

• Buyer then has 5 days to produce Evidence.

• If Buyer fails to provide Evidence, Seller must send Notice and allow 2 days to cure. Seller would use the F816 Notice: Seller hereby notifies Buyer that they are default. Buyer has 2 days to cure their default.

• If Buyer does not cure their default, Seller may terminate within 7 days or until closing, whichever is less. Seller would have the right to the Earnest Money as a remedy for the Buyer default.

Condo / Project Approval Situations

3. If lender cannot approve project insurance/development:

• Buyer may terminate with lender letter.

• This Buyer protection lasts until closing. The best way to prevent this from affecting a closing is to make sure the condo or master insurance policy will qualify for financing during the listing. This includes: the insurance coverage amount, the insurance deductible amount, condo association reserves, and deferred maintenance.

Home Warranty Requirement for Homes Less Than 1 Year Old

4. Seller is required to provide a home warranty acceptable to the lender.

☑ 413 – USDA-RD Loan Contingency

Buyer Actions

Immediately After Binding Agreement Date

1. Promptly apply for the conventional loan (not FHA, VA, USDA or private / hard money lending) described in the exhibit:

• Loan amount (% of purchase price)

• Term

• Interest rate cap - any rate at or below the rate listed in the exhibit

• Rate type (fixed, adjustable, interest only)

2. Apply with any lender or with the Approved Lender if one is listed.

3. Begin submitting all required loan documentation to lender.

Early Loan Process

4. When Buyer sends a Notice of Intent to Proceed with a lender, Buyer must:

• Notify Seller

• Provide lender name and contact information.

📑 Use the F816 Notice: Buyer hereby gives Notice to Seller that Buyer has sent Notice of Intent to Proceeds to [John Smith at ABC Mortgage Company, 555-555-5555].

During Financing Contingency Period

5. Work with lender to obtain underwriting approval.

6. Provide lender with all Required Information, including:

• Financial documentation

• Loan paperwork

• Property reports required by lender

• Any additional underwriting documentation.

If Buyer Cannot Obtain Loan

7. Buyer must terminate before the financing contingency expires.

8. Within 7 days of notice, Buyer must deliver:

• The denial cannot be based solely on:

1️⃣ Buyer lacks sufficient funds to close

2️⃣ Buyer has not sold or leased property (since this would be included as a separate contingency)

3️⃣ Buyer failing to provide information information to the lender timely

4️⃣ Buyer buying things that hurt their debt-to-income ratio

5️⃣ The property not appraising

6️⃣ The lender not completing underwriting

Appraisal Situation

9. If property appraises below purchase price and appraisal contingency exists:

• Buyer may request a price reduction within the time stated by sending the Seller the Appraisal and the F713 Amendment to Purchase Price.

• Follow the timeline for Seller and Buyer negotiation.

• This contingency DOES NOT protect the Buyer if the appraisal is not received. It only protects the Buyer if there is an appraisal and the property appraised from less than the Purchase Price.

Condo / Master Insurance Projects

10. If lender cannot obtain project approval, Buyer may:

• Terminate the contract. but must provide a letter from the lender explaining approval failure.

• This protection does not expire with the financing contingency. It lasts until closing.

USDA Funding Allotment

11. Buyer has the right to terminate if the USDA loan program has not available funds.

After Financing Contingency Ends

12. If Seller requests proof of ability to close:

• Buyer must provide evidence within 5 days, but has 2 days to cure their default if they miss the deadline.

• Evidence is a loan commitment letter with the loan type, loan amount, loan terms and all conditions necessary to find the loan.

Authorization

13. Buyer authorizes lender communication with Seller and Brokers about:

• Loan status

• Financial ability

• Conditions remaining

• Basis of loan denial

Seller Actions

If Buyer Terminates Due to Loan Denial

1. Review Loan Denial Letter for validity.

• Seller may dispute if denial is based on prohibited reasons.

• Seller may dispute if the denial is not for the loan and loan terms described in the exhibit.

After Financing Contingency Ends

2. Seller may request Evidence of Buyer’s Ability to Close.

• Seller will use the F816 Notice: Seller hereby requests Evidence per paragraph 10 of the USDA-RD Loan Contingency.

• Buyer then has 5 days to produce Evidence.

• If Buyer fails to provide Evidence, Seller must send Notice and allow 2 days to cure. Seller would use the F816 Notice: Seller hereby notifies Buyer that they are default. Buyer has 2 days to cure their default.

• If Buyer does not cure their default, Seller may terminate within 7 days or until closing, whichever is less. Seller would have the right to the Earnest Money as a remedy for the Buyer default.

Condo / Project Approval Situations

3. If lender cannot approve project insurance/development:

• Buyer may terminate with lender letter.

• This Buyer protection lasts until closing. The best way to prevent this from affecting a closing is to make sure the condo or master insurance policy will qualify for financing during the listing. This includes: the insurance coverage amount, the insurance deductible amount, condo association reserves, and deferred maintenance.

Home Warranty Requirement for Homes Less Than 1 Year Old

4. Seller is required to provide a home warranty acceptable to the lender.

USDA Funding Allotment

5. Buyer has the right to terminate if the USDA loan program has not available funds.

☑ F401 – No Financing Contingency (Cash or Loan Without Contingency)

Buyer Actions

Immediately After Binding Agreement

1. Buyer must provide verification of funds within the specified number of days. Acceptable proof includes:

• Financial institution letter or account state confirming funds OR

• Loan commitment letter (only if 1.B. was selected)

Appraisal Contingency (if selected)

2. If property appraises below purchase price, Buyer may request price reduction. Buyer must send to Seller:

• Buyer may request a price reduction within the time stated by sending the Seller the Appraisal and the F713 Amendment to Purchase Price.

• Follow the timeline for Seller and Buyer negotiation.

• This contingency DOES NOT protect the Buyer if the appraisal is not received. It only protects the Buyer if there is an appraisal and the property appraised from less than the Purchase Price.

Closing Date Extension

3. Buyer cannot extend closing due to mortgage delay.

Seller Actions

Verification of Funds

1. Wait for Buyer to deliver proof of funds within required timeframe.

2. If received, review the verification of funds to ensure that it meets the requirements of the exhibit.

3. If the Buyer fails to deliver the Verification of Funds, Seller has the right to send Notice of default.

• Use the F816 Notice: Seller hereby notifies Buyer that they are default. Buyer has 3 days to cure their default.

• If Buyer fails to cure, Seller may terminate within 7 days after cure period expires. Seller would have the right to the Earnest Money as a remedy for the Buyer default.

Appraisal Requests

4. If Buyer submits a price-reduction amendment and copy of the appraisal:

• Seller may accept or reject

• Buyer may terminate if the Seller does not agree to reduce the Purchase Price.

Mastering the financing exhibits allows you to confidently guide every step of the transaction from contract to closing. When you can track each deadline, identify who is responsible for the next action, and communicate that clearly to your clients, you create a smoother, more predictable experience for everyone involved. That level of organization builds trust, minimizes surprises, and keeps deals moving forward. And when you pair that with simple, client-friendly checklists, you elevate your service in a way that clients notice, appreciate, and remember.

I am currently working on a deadline tracker spreadsheet and buyer / seller financing guides. Be on the lookout for more info in the near future.

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If this topic matters to your business, you’ll want to listen to a closing attorney and REALTOR® break it down.

Cheryl Conner King

Founder & Instructor

REALsmart Real Estate School

Attorney | REALTOR® | CE Instructor

📍 Based in Georgia | Teaching Statewide