Whenever you put in an offer to purchase a home, their will be a variety of conditions that must be met. One of those conditions, is proving that you can actually get approved for a mortgage and be able to pay for the house. This is called the condition of finance.
If you are working with a realtor, they’ve already made sure to put this condition in the offer. When buying privately though this can sometimes be missed – and that can be a big Oops!
Without this condition in your offer, sellers have the right to keep your deposit if you have to withdraw your offer because you can’t get approved for a mortgage.
