Income and employment conditions
Even after initial approval, lenders often want an updated pay stub or employment letter close to your closing date to confirm nothing has changed. If you're self-employed, they may request updated financial statements or a recent NOA.
Property related conditions
A satisfactory appraisal is one of the most common conditions, especially on higher value homes or unique properties. Condo purchases often come with a condition requiring review of the status certificate to check the building's financial health.
- Satisfactory appraisal confirming property value
- Status certificate review for condos
- Fire insurance binder in place before closing
Down payment and closing cost verification
Even if you satisfied the 90 day rule during pre-approval, lenders typically want a final confirmation closer to closing that the funds are still in place and haven't been spent.
Legal and title conditions
Your lawyer needs to confirm clear title and register the mortgage properly, which is a standard condition on every deal. Lenders also require proof of home insurance with them listed as the lienholder before releasing funds.
Frequently asked questions
- What happens if I can't meet a condition?
- Depending on the condition, your lender may extend the deadline, adjust the loan amount, or in some cases withdraw the approval, so it's important to address conditions quickly.
- How long do I have to satisfy conditions?
- This varies by lender and deal, but it's usually tied to your closing date, so conditions should be cleared well before then.
- Can conditions change after I've already been approved?
- Yes, if your financial situation changes or new information comes up, such as a lower appraisal, a lender can add or adjust conditions.