Maybe, but not necessarily.
Unless you're buying the house all cash and don't need a mortgage at all, you might want to re-consider your decision not to include a financing condition, and here are a few reasons why.
1. Are you properly pre-approved?
Most independent mortgage brokers will get all the information they need and do a proper credit report when pre-approving you. Big banks, however, will often not thoroughly discuss income and debt not reported on credit reports, and sometimes base your pre-approval on your history with them without even doing a full credit report up front. Obviously, this can lead to some troubling reversals after an offer is made and submitted for financing and they see something they don't like on your full credit report or financial information. And even if you're the poster child for fiscal responsibility, no system is perfect and there could be errors on your credit report which will need to be address and fixed - a process that can take time. I've seen this happen. Fortunately, a mortgage broker caught it while doing a pre-approval, and the client was able to first get it resolved before proceeding to shop for a house. That would have been a very stressful time if they had already bought a house and couldn't close.
2. Discrepancies between credit reports
Similar to the surprise of errors, there can also be discrepancies between one report and another. I have seen a full and proper pre-approval done on a client. Then when the offer was submitted, a credit issue still came up. Why? The broker pulled a report from one of the major Canadian credit reporting companies and it showed clean. The lender, however, pulled a report from the OTHER major credit reporting company, and there was an old credit issue that had fallen off of the first report but was still reported there. It was enough to disqualify them from financing and they didn't have a lot of options for lenders at the time. It could be differences in the time the company keeps an item on your history, or it could be an error on one not showing on the other. But either way, there could be a discrepancy between one report and another that leads to problems.
3. Sometimes "appraisals go bad"
Even if everything is okay for the qualification and the bank wants to lend you a million dollars, the mortgage appraisal may come in lower than expected. If the mortgage company feels the property is worth less than you have offered, they will only give you a mortgage based on that amount. So as an example, you have offered $700,000 but the lender's appraiser thinks it is worth $550,000, they will give you a mortgage based on $550,000 and you will have to cover the shortfall out-of-pocket. If you're in a conditional sale, you have options such as trying to negotiate a price reduction or walking away. But if you don't have the financing condition, you are in a binding contract to close at that price and failure to do so could result in a lawsuit and at the least, the loss of your deposit. For a bit more on this, visit previous article [ "When appraisals go bad" ].
4. The property also needs approval
Besides your financial qualification and the appraisal, the lender is going to look at the property itself. They could take issue with any number of things about it from property condition to location. I've seen one lender refuse to approve a purchase in the country because of railroad tracks they felt were too close, and that buyer didn't have a lot of lenders to choose from based on their personal situation. I've also heard of problems with mortgage insurance cropping up unexpectedly because of a house being a former grow-op - something the buyer couldn't have known but was on record with the insurer! You never know what might come up.
So, unless they are in a very strong cash position, I always advise my clients to keep some kind of financing conditions if possible, even if they have been pre-approved. Removing them can be a real risk with some factors beyond your control.
This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. JarvisReplyDelete
You have done a great job. I will definitely dig it and personally recommend to my friends. I am confident they will be benefited from this site. Ativador Office 2019ReplyDelete
Wow, cool post. I'd like to write like this too taking time and real hard work to make a great article but I put things off too much and never seem to get started. Thanks though. avast cleanup premium key 2019ReplyDelete
This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. Portia Antonia Alexis NeuroscienceReplyDelete
I don t have the time at the moment to fully read your site but I have bookmarked it and also add your RSS feeds. I will be back in a day or two. thanks for a great site. Buy Fake passport DocumentsReplyDelete
This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. 컴퓨터수리ReplyDelete
You have a real ability for writing unique content.I like how you think and the way you represent your views in this article.I agree with your way of thinking.Thank you for sharing. reignite reviewsReplyDelete
This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. anthony jerdineReplyDelete
Great article with excellent idea!Thank you for such a valuable article. I really appreciate for this great information. OmanReplyDelete
Great article with excellent idea!Thank you for such a valuable article. I really appreciate for this great information. lottovipReplyDelete
This is a great inspiring article.I am pretty much pleased with your good work.You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. fn 502 tactical for saleReplyDelete
Thanks for writing such a good article, I stumbled onto your blog and read a few post. I like your style of writing. https://www.royalapar.com/alat-pemadam-kebakaran/ReplyDelete
I like the valuable info in your articles. I'll bookmark your blog and check again here regularly. I'll learn plenty of new stuff right here! Best of luck for the next! Regards Goldshell KD6ReplyDelete
If more people that write articles really concerned themselves with writing great content like you, more readers would be interested in their writings.Thank you for caring about your content. MyCCPayReplyDelete
Hi there, I discovered your blog per Google bit searching for such kinda educational advise moreover your inform beholds very remarkable for me. Www.MyCcPay.ComReplyDelete
Great article with excellent idea!Thank you for such a valuable article. I really appreciate for this great information. Foxit Reader Full CrackReplyDelete
What a fantabulous post this has been. Never seen this kind of useful post. I am grateful to you and expect more number of posts like these. Thank you very much. Foxit Reader Full CrackReplyDelete
Awesome blog. I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work! Mega888 tumblrReplyDelete
Wow! Such an amazing and helpful post this is. I really really love it. It's so good and so awesome. I am just amazed. I hope that you continue to do your work like this in the future also. Mega888 tumblrReplyDelete
Thanks for this great post, i find it very interesting and very well thought out and put together. I look forward to reading your work in the future. ยูฟ่าReplyDelete
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often. ufabetReplyDelete
Thanks for writing such a good article, I stumbled onto your blog and read a few post. I like your style of writing. drawing ideasReplyDelete
Thank you sir. This is very good post.ReplyDelete
car parking mod apkReplyDelete
verry nice c Electric Scooter Is So Famous, But Why?arReplyDelete
โปรมาใหม่ สำหรับทุกคน สมัครเล่นเกมใหม่ที่นี่ เราอัพเดทเกมใหม่ล่าสุด 2022 ศูนย์รวมโปรสล็อตใหม่ล่าสุด สมัครสมาชิกฟรีเครดิต เข้าเล่นเกมฟรีก่อนใครReplyDelete
สมัครสมาชิกเล่นสล็อตออนไลน์ที่นี่ ทางเข้า slot มือถือ ิคลิ๊กที่นี่เลย
รวมโปรสล็อตสมาชิกใหม่ มากมาย อัพเดทโปรโมชั่นมาใหม่ ที่ตอบโจทยืนักเดิมพันทุกท่าน มากกว่าเดิม รับเครดิตฟรีมากมายที่นี่
รวมโปรสล็อตถอนไม่อั้น เล่นได้ตลอด 24 ชั่วโมง สามารถเล่นได้บนมือถือ ทุกรุ่น ทุกระบบ ทั้งระบบ android, IOS หรือจะสามารถเล่นผ่านคอมพิวเตอร์ เว็บไซต์ได้เช่นกัน
Love to read it,Waiting For More new Update and I Already Read your Recent Post its Great Thanks. OKBETReplyDelete
This content is simply exciting and creative. I have been deciding on a institutional move and this has helped me with one aspect. vn88 rezenceReplyDelete
The target of the remainder of this white paper is to help endeavor engineers make the vital attention to what should be approved, how the approval will be performed and the normal benefits of the general exertion. pcmagReplyDelete