Contingency

A contingency in lending refers to a condition or requirement that must be met for a loan to be approved, closed, or funded. These conditions serve as safeguards for both the borrower and the lender, ensuring that certain criteria are satisfied before the loan process can proceed to the next stage. 

Common contingencies include appraisals, inspections, title searches, and the verification of financial information such as income and credit scores. If these conditions are not met within the specified timeframe, the loan may be delayed or canceled.