by Asadullah 
What is an Offer that is Subject to Financing?
This is an Offer to buy a property that is “Subject To” or conditional upon the Buyer getting a mortgage within a set period of time, usually one week.
In plain language, the Buyer and Seller agree to give the Buyer a week to get a mortgage and if the Buyer cannot get a mortgage in that time, the Buyer can walk away from the deal with nothing lost.
Why do we make offers Subject to Financing?
Safety! If a Buyer presents an offer to a Seller without a Subject to Financing clause (like with a Subject Free Offer) and the Buyer can’t get a mortgage, the Buyer will have to pay the entire purchase price in CASH!
I don’t know too many people who have several hundred thousand dollars in cash laying about to buy property, so not having a Subject to Financing may put a Buyer in a tight spot involving very expensive lawyers fees…
How do we make an Offer Subject to Financing?
If you’re going to buy property, hire a professional Realtor to help. They should have standard contracts with a Subject to the clause for about every single situation that you may come across and will undoubtedly be able to help you prepare an Offer Subject to Financing.