Should I have a Financing Condition?

For your conditions you and your realtor will decide what conditions are appropriate on the home you offer on. When you make a purchase you need mortgage money for you are making an offer to buy a home using someone else’s money without letting them evaluate it first. During a financing condition (typically 5 days) a lender will officially evaluate the property and sign off on an appraisal supporting the value that you paid for it.

If you do not have a financing condition and the appraisal supports the condition, desirability and purchase price paid for the property then there isn’t an issue, many people take this risk to be competitive in this market. Ideally if you are doing this we have discussed all back up plans and know what options you have should something not go smooth like the appraisal finding something wrong with the property or the appraisal value comes in lower.

If you look at a house you love and think you might make an offer without a financing condition please send us the realtor listing ahead of time so we can unofficially review it with several lenders to make sure you have lots of options and there are no known red flags on the property or the listing. We will also make sure you know you have back up plans and are aware of your worst-case scenarios. Then as long as you offer what the house is worth and the appraisal supports that we have lots of options for you on that property. Note this is why you need to be pre-approved with a fantastic broker that has access of lots of options for you!!!