Significance

• Before you change lenders, confirm with the new lender that 40 days is enough time for them to complete the loan process so you can comply with your contractual obligation. If you default, the seller may cancel the contract, retain your earnest money deposit and sue you for damages for breach of contract and attorney's fees.
  
  

Double Pre-Approval

• Many buyers get pre-approved for a loan with more than one lender just in case the first lender fails to perform, or they are unhappy with the final loan terms or services of their lender or mortgage broker. You can avoid many problems by following this practice.
  
  

Possibility

• Ask the seller for an extension to close the transaction. Be prepared to pay cash, borrow the funds from a friend or family member or stay with the first lender if the seller denies your request in order to purchase the home and close within the 40-day period.