Buying
Understanding Financing Conditions
Published 2025-03 · Updated 2025-05 · 5 min read
Why a financing condition matters even with a pre-approval, and what a buyer should know before waiving one.
A pre-approval and a firm mortgage commitment are not the same thing. A financing condition gives your lender time to review the specific property — appraised value, insurability and updated financials — before you're committed to buy.
What can change
Appraised value can come in below the purchase price, especially in a shifting market. Insurance surprises, dated systems and non-standard construction can also affect final approval.
When buyers waive
In competitive situations, some buyers waive financing after doing homework with their lender in advance. This carries real risk if the property later appraises differently. Talk through the scenario carefully before offering.
Mortgage advice is the mortgage professional's role. Carmen coordinates so your timing works with the lender and lawyer.
This resource is educational and reviewed periodically. It is not legal, financial, tax, mortgage or inspection advice.
Next step
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