October 08 2021
When a buyer offers to purchase the home from the seller as long as specific conditions (i.e. financing) are met within a specific period of time. The buyer and seller will both need to meet these conditions within the timeframe, which is usually 2-7 days, for the purchase to go through. If the conditions are not met, the offer is considered void and the deposit will be returned to the buyer.
Conditional offer means that the buyer must secure a mortgage from a lender to purchase the home for the home purchase to go through. During the 2-7 days that the financing takes place, the goal is for the buyer to work as hard as possible “in good faith” to get approved for a mortgage.
Getting pre-approved for a mortgage before you put in an offer is a great way to secure yourself if the seller does not allow for a conditional offer. A pre-approval is not 100%, however, it provides the security of knowing that a financial institution will lock in a rate and lend you a specified amount of money. We highly recommend home buyers get pre-approved before they start home shopping.
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