Purchasing a Home? Avoid this Pitfall!

December 20, 2023 | Posted by: Jeremy Schaffner

Subject to Financing when purchasing a property.

When writing an offer to purchase a property, it is important to include certain subjects to ensure that you protect your interests.

One such condition is “subject to financing”.  A financing subject protects you from losing your deposit and the potential of being sued by the seller for non-completion of the contract.  You cannot back out of a potential deal simply because you change your mind.  However, if your offer is conditional on financing that is satisfactory to you, this will allow you – the buyer, to have a pre-determined amount of time to secure mortgage financing that you are comfortable with.  Alternatively, if you are unable to secure a commitment from a lender to fund the mortgage, you will be able to collapse the contract becuase you have been unable to fulfill the subjects.

It is always a good idea to get a pre-approval from me before searching for your new purchase.  This will allow us time to investigate suitable financing, setting you up for a seamless process.

If you have any questions or would like a pre-approval, please reach out!  

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