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Originally Posted by Nabber
I know there was a new story about it and how dangereous it is but that's because these un-conditional offers are being put forth without knowing what the buyers with qualify for. I feel the property inspection is way more important than the financing condition, you never know what's wrong with a certain house, with financing at least you know if you've talked with your bank or broker.
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Even though you might be preapproved for the amount of mortgage you need to buy a particular house, that doesn't guarantee the bank will give you a mortgage.
The banks will do an appraisal before approving a mortgage. What happens if their assessment of value is much lower than the purchase price, and they decide it is too risky for them?
If you waive that condition and fail to arrange financing and cannot close the deal, you will loose your deposit and can be sued for damages. These damages could be severe if the house fails to resell quickly (racking up interest claims) or resells for a much lower price (causing a claim on the differential between your offer and the final closing price).
Personally, I would sooner forgo the property inspection condition, although I wouldn't recommend this to anyone either. At least you can close the deal on a house with a cracked foundation.