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Unmet Financing Approval Condition Surprises Everybody


Looking At Houses For Sale In Red Deer

Just So You Know:

A Buyer came to us pre-approved for well above the purchase price of their chosen home. Great start. We negotiated an accepted offer and sent the contract and details of the listing to the mortgage broker. Financing was approved and the finance condition removed. We then sold their current home and removed the Sale of Buyer’s Home condition. Completed the property inspection and the house was in awesome shape – removed the property inspection condition, and paid the second deposit.

Last Minute Disappointment

Excitedly awaiting closing day, these Buyers were shocked when the lender ultimately declined the financing at the 11th hour. There was a “condition” of financing that had not been met much to the surprise of the Buyer and to ourselves.

Hidden Conditions

We (their realtors) were not informed that the financing was “conditional”.  The mortgage broker and everyone else believed that the one small condition would easily be met (by a third party and out of everyone’s control). The official letter of approval we received had no mention of a “conditional” approval. As knowledgeable agents in Red Deer real estate, we would never have allowed the Buyers to remove their finance condition, putting their substantial deposit at risk, if definite approval had not been provided.


Important Tip For Those Buying Red Deer Homes

Never, ever, remove your financing condition on your offer to purchase if it is conditional with your lender for any reason – no matter how inconsequential the condition seems.  Make sure you know what’s involved because every detail matters. You may talk to us about anything you’re unsure of.

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Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
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