Originally Posted by X5 Meister

Nope, I wouldn't do it. If you don't get the loan then you lose the down payment. Just because a banker says there is no problem that you'll qualify for the loan isn't good enough (btw you need to get that statement in writing). What a lot of people forget is that getting a mortgage is different from getting a loan. Not only does the buyer need to be approved, but the PROPERTY needs to be approved as well. For example, if the asking price of the property is $1,000,000 but the bank's appraisal of the property is $750,000 then either the bank will not approve the loan with standard financing or they will only do so with considerable change in terms (such as significantly higher downpayment, etc.) So even if YOU qualify for the $1,000,000 loan (or 900,000 if financing 90%) the PROPERTY might not. (Keep in mind that doesn't mean the property isn't worth $1,000,000, it means that the bank is not willing to take a risk on the property unless the deal is sweetened for them... think about the extreme case.... you want a $10 million loan (very low interest) for a $500,000 house ... obviously the $9.5 million is going to go somewhere else entirely and the bank realizes that fact and isn't stupid) If you've dropped your loan contingency, then your downpayment is going bye bye.

Sounds crazy right? I've seen it happen way back when. Granted, this was a much rarer scenario the past 10 years since banks would give out mortages to anyone with a social security number, but now the situation is totally different. People are finding it harder to get 90% financing anymore for large loans, banks are getting much more strict with their appraisals, etc.

Hope this helps.