How can a buyer ensure the return of earnest money if their loan does not get approved?

A buyer can ensure the return of earnest money if their loan does not get approved by including a contingency clause in the purchase contract. This contingency clause serves to protect the buyer in the event that they are unable to secure financing for the property.

By including this clause, the buyer stipulates that if their financing falls through, they have the right to back out of the deal and receive their earnest money back. This contractual protection creates a clear understanding between the buyer and seller about the conditions that would lead to a refund of the earnest money, thus minimizing the buyer's risk and ensuring they are not penalized in situations beyond their control, like loan denial.

Options such as requesting the earnest money from the lender or the seller differ fundamentally because those are not guaranteed routes or may not align with the contractual framework established. Placing a stop payment on a check does not address the fundamental agreement about the earnest money and might lead to complications or disputed claims between the parties involved.