Why Do I Need A Financing Condition?

When a lender provides you with a pre-approval it is typically subject to what property you wish to purchase and at what price. A simple way to think of this, is the lender is your business partner in whatever property you purchase. That said if you decide to offer far above market value for a property that you absolutely LOVE, the lender may not be as excited as you are to overpay for that property. In this case, the lender will likely reduce the percentage of the purchase price they will lend you… meaning you would need to come up with the differential in price on your own.