Every fall I get some version of the same call. A buyer has had their offer accepted, they had a pre-approval from their bank, and they think the mortgage part is done. Then the lender asks for another document, the appraisal gets booked for the day before their financing condition runs out, and suddenly the whole deal is sitting on a deadline they didn’t know was tight.

Usually it works out. But the space between “offer accepted” and “keys in hand” is where most mortgage surprises happen, and most of them can be seen coming.

Three words that sound the same but aren’t

Pre-approval is a review of you: your income, your credit, your down payment, and a rate hold. It tells you roughly what you can afford. It does not approve a property, because there isn’t one yet.

Conditional approval comes after you have an accepted offer. The lender has now looked at you and the home, and said yes, subject to conditions. Those conditions are usually documents (pay stubs, an employment letter, bank statements, the agreement of purchase and sale), a satisfactory appraisal, and on some files, a second approval from a mortgage insurer.

Firm means the lender has signed off on every condition. That’s the point where it’s safe to waive your financing condition.

The mistake is treating the first one like the last one.

How long a financing condition really needs

In a busy market, buyers feel pressure to offer a 24- or 48-hour financing condition, or none at all. In practice, a lender usually needs about five business days to take a file from accepted offer to firm, and longer for rural properties, cottages or anything unusual, where booking an appraiser can take days on its own.

If your realtor needs a short condition to compete, talk to your broker before the offer goes in, not after. Having your documents uploaded and reviewed in advance is what makes a short condition realistic.

Under 20% down? You need two yeses

If your down payment is under 20%, your mortgage has to be insured. That means two separate approvals: the lender’s and the mortgage insurer’s. The insurer looks at you and the property on its own terms.

The insurer may accept an automated valuation of the home, or it may ask for a full appraisal. If that appraisal comes in below your purchase price, the lender lends on the lower number, and the difference comes out of your pocket. That’s worth knowing before you bid well over asking on a property with few comparable sales.

The paperwork that slows files down

The most common delay isn’t credit or income. It’s missing documents.

• Down payment history. Lenders want a clear paper trail showing where your down payment came from, usually your recent statements. A missing statement, or a large deposit with no explanation, can hold up a file for days.
• Gift letters. If family is helping, the lender will want a signed gift letter and proof the money has landed in your account.
• Proper statements, not screenshots. Your name, account number, balance and the full transaction history on each page.
• Condo documents. For condos, the status certificate gets reviewed too.

Getting these together before you shop is the single best way to make your financing condition a formality.

What can still go wrong after “firm”

Firm isn’t quite the end either. Lenders can recheck your file before closing, and some pull your credit again. Between approval and closing, avoid:

• financing a car, furniture or anything else on credit
• changing jobs, or moving from salary to commission or contract
• moving large sums of money around without a paper trail
• missing a payment on anything

Each of these can change the numbers the lender approved, and a few weeks before closing is the worst time to find out.

When waiving financing is reasonable, and when it’s a gamble

Waiving the financing condition can make sense when your file is fully underwritten, your down payment is verified and in your account, the property is a straightforward type, and you have enough cash to cover a low appraisal.

It’s a gamble when your income is new or variable, your down payment depends on a sale or a gift that hasn’t landed, the property is unusual (rural, a cottage, mixed-use), or you’re stretching to your maximum. In those cases, a waived condition puts your deposit at risk if the lender says no.

Your offer-to-keys checklist

1. Get a pre-approval with your documents actually reviewed, not just a rate hold.
2. Have a clear paper trail for your down payment ready (usually your recent statements), with any big deposits explained.
3. Ask your broker how long a financing condition this property realistically needs.
4. If you’re putting less than 20% down, plan for the insurer’s approval and a possible appraisal.
5. Don’t take on new debt or change jobs until after closing.

If you’re buying this fall, or know someone who is, I’m happy to go through where your file stands before you make an offer, so the conditions on your offer are ones you can actually meet.

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