When buying a home – especially in competitive markets – it can be tempting to make a “clean” offer (one without conditions) to appeal to the seller. But, be sure to listen to your mortgage agent and always thinking twice before waiving key conditions. These clauses are designed to protect you, and removing them can expose you to serious financial and legal risks.
Common conditions
The most common condition is financing. Even if you’ve been preapproved for a mortgage, that doesn’t guarantee final mortgage approval. The lender will still need to assess the property and may decline funding if it doesn’t meet their criteria (eg, appraisal coming in low or zoning-related issues). A financing condition gives you time to secure a firm approval, ensuring you’re not on the hook for a purchase you can’t afford.
Another vital condition is the home inspection. This allows you to uncover any hidden issues such as structural damage, plumbing problems or mould. Without this condition, you could end up facing costly repairs after closing – with no recourse.
In some cases, buyers include a sale of the buyer’s property condition, ensuring they don’t end up owning two homes at once if their current home doesn’t sell.
Being competitive vs protected
Including conditions doesn’t mean your offer won’t be accepted. It’s about striking a balance between being competitive and protected. A conditional offer shows you’re serious – but also responsible.
Always work closely with your mortgage agent and realtor to draft an offer that protects your interests. It’s better to lose out on a home than to be locked into a deal that could damage your financial future.
Your dream home should be a blessing, not a burden. Conditions are your safety net and they should be used wisely.
Have questions about making a conditional offer or your mortgage in general? Answers are a call or email away!