Would you waive the financing condition in this situation, or ask for an extension?
We recently had an offer accepted on a condo and included a financing condition. In hindsight, we probably should have obtained a fully underwritten pre-approval first, but we had strong incomes, good credit, significant savings and only wanted a roughly $275,000 mortgage we putting 180k down , so we didn’t expect the process to be this difficult.
We applied through a mortgage broker, but communication has been frustrating. We wanted a fixed-rate mortgage, yet the broker initially focused on getting us approved for a variable mortgage so we could remove the condition and then potentially shop for a fixed mortgage afterward.
Conditions are due tomorrow at 1pm.
We thought we could get approved last week, but
The lender then came back with several questions about our documents, including an employer-name discrepancy on a T4, how rental income and ownership of another property were reported, an old missed-payment issue from 2021, and some bank-account information. We answered everything, but we still haven’t received a firm written commitment.
Again, we make over 180k own multiple properties , no debt and will have over 200k savings even after this place .
We approached a bank directly BMO over the weekend to try and push this.
Our realtor says the bank or mortgage agent should be able to tell us “with certainty” that we’ll be approved and seems to expect us to waive the condition based on that reassurance. However, we still don’t have a written commitment confirming the approved amount, fixed rate and any outstanding lender conditions.
Is this amount of back-and-forth normal for a mortgage application? Would you waive the financing condition based on verbal reassurance from the broker/bank, or insist on a written commitment or request an extension? At what point is an approval actually firm enough to safely remove the condition?
I don’t trust the verbal commitments anymore.