Most buyers do not have enough cash available to buy a home, so they need to obtain a mortgage to finance the purchase.
When making an offer, it is vital to include a financing contingency that informs the seller about your financing plans. A seller will want to know that you can quickly obtain a mortgage and how much you are able to put down. That is one of the major reasons that financing details are included in your offer.
As part of your offer, you will need to disclose the size of your down payment. Once again, this allows the seller to evaluate your likelihood of obtaining a home loan. It is easier to get approved for a mortgage today when you put down at least 20% or more – for condos it is closer to 30% in most cases.
When a buyer puts down 20% or more, a seller will feel more confident that the transaction will close and be more willing to accept your offer.