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What is a Financing Conditional Offer?

When, the seller accepts your offer for the purchase of the property, he/she will state a number of terms and conditions. The most common condition is for the buyer to arrange mortgage financing within a certain number of days or the agreement will be void. If, the condition is not satisfied the seller will return the deposit in full without deductions.

This, condition is included for the benefit of the buyer and can be waived at the buyer’s sole option by a notice in writing to the seller, within the specified time period. 


Time Period:

The time specified is typically 5 to 7 business days can change depending on what the parties have agreed upon. This, period can be extended if agreed by both parties.



A mortgage pre-approval is useful because it shows how much you can afford. Once you get pre-approved for your mortgage, you can start looking for properties and purchase within the specified time period. The rate hold is typically 90 to 120 days, this depends on each lender.

There are many reasons why you should get a pre-approval. Here, is a list of pros and cons that can help you decide.




·         Purchase what you can afford

·         Estimate your mortgage payments

·         lock in the interest rate

·         Real estate agents can look for specific properties in your price range

·         Increase bargaining and negotiating power with the seller





·         Does not guarantee you will get the mortgage for that amount

·         The interest rate is only valid for a certain time period



Qualifying for a Mortgage:

When, arranging for your mortgage financing, finding a mortgage broker is the best place to start. While, the bank is providing you with an interest rate, it might not be the lowest rate when compared to other lenders.

Mortgage brokers will ask for financial documents to complete your financing application. Some, common documents they will ask for in order to qualify you for your mortgage request:


·         Identification

·         Income documents

·         Property documents

·         Credit reports

·         Bank statements

·         Your expenses


The mortgage broker/ lender will determine your affordability according to the property you have purchased.


The lender will ask some of the following questions to determine if your mortgage is approved.


·         Do you have enough income to make the monthly payments?

·         Is your employment 3 years or more?

·         What is your credit score?

·         Do you have any other properties or is this a first-time purchase?

·         How much down payment can you make?

·         Do you have enough funds to pay your down payment and closing costs?

·         What is the market value of the property?


The mortgage financing process can be difficult and lengthy. For individuals who are first-time home buyers a pre-approval will be the best option to assess their affordability. If you’re purchasing your 2nd or 3rd residential property, finding a reliable mortgage broker 2 or 3 months before your closing is the best option. Instead, of paying additional costs when the mortgage financing has not been arranged before the closing date of the property.


Therefore, Rateshop is a mortgage brokerage that guides both first-time home buyers and purchaser’s investing in their 2nd or 3rd properties. We can get your mortgage financing request approved within 48 hours. We have access to 65+ lenders that can accommodate any home buyer. Call us today or book a free mortgage case review online!

Payal Payal 04/04/2019
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