Purchase Contract Mortgage Conditions: How to Clear Addendums, Price Changes, and Signatures

The purchase contract drives more of a purchase file than almost any other document. The sales price, the earnest money, the seller credits, the closing date, and the names on the loan all trace back to it. When the contract and the rest of the file disagree, underwriting issues a condition, and a contract condition often can't be cleared by the borrower alone. It needs the buyer, the seller, and usually both agents to sign something.

This guide covers the purchase contract conditions processors see most, what underwriters usually want to clear them, and how to request the right documents the first time. Requirements vary by loan program, investor, and state, so always confirm the specifics against the guidelines you are working under.

What a purchase contract condition is really asking for

When an underwriter conditions on the contract, they are usually confirming that the file matches a complete, fully executed agreement. That typically means checking:

• Completeness: every page, every counteroffer, and every addendum referenced in the contract is in the file.
• Signatures and dates: all buyers and all sellers have signed and dated each page or section that requires it, including initials on changes.
• Terms that match the loan: sales price, loan amount, financing type, seller concessions, and closing date agree with the loan application, the Loan Estimate, and the appraisal.
• Parties and property: the buyer names match the borrowers, the seller matches the owner of record on title, and the property address and legal description are correct.

If you know which of these the condition is about, you can ask the agents for exactly the right fix instead of a generic "please send the full contract."

Missing pages, counteroffers, and addendums

The most common contract condition is simply an incomplete contract. The file has the main agreement, but the counteroffer that changed the price, the financing addendum, or a repair addendum is missing. Underwriters need the full chain so they can see the final agreed terms.

• Ask the buyer's agent for the complete executed contract package, including every counteroffer and addendum, in one file.
• Check the page numbering ("page 4 of 12") and any list of attached addendums before you send it to underwriting.
• Watch for state-required disclosures or HOA and lead-based paint addendums that the contract references but the file doesn't include.

Sales price and seller credit changes

Price reductions after the appraisal and changes to seller credits are where contract conditions get time-sensitive. A new price or credit changes the loan amount, the LTV, the cash to close, and often the disclosures. Underwriters will want an amendment signed by both sides before they rely on the new numbers.

• Request a fully executed amendment showing the new sales price or credit, signed and dated by all buyers and sellers.
• Confirm the seller credit stays within the program's interested party contribution limits for the LTV and occupancy.
• Make sure the credit is described as allowable closing costs or prepaids, not cash to the buyer or credits for repairs the program won't allow.
• Flag the change to your loan officer right away, since a lower price or a new credit may require a redisclosure.

Names, vesting, and party mismatches

Contract conditions also come up when the people on the contract don't match the people on the loan. A co-borrower may be added who isn't on the contract, a buyer on the contract may not be on the loan, or the seller listed may not match the owner shown on the title commitment.

• When a borrower is added or removed, request an amendment adding or removing the buyer, signed by all parties.
• Compare the seller's name against the vesting on the title commitment. A trust, an estate, or an LLC seller may need extra documents to show who can sign.
• Check for typos in names and the property address, since a small error can carry into the note and deed.

Closing date and contract extensions

If the contract's closing date has passed or will pass before you can fund, underwriting or the closing agent may need proof that the contract is still in force. An expired contract is one of the easiest conditions to miss because nothing in the file changes when the date goes by.

• Request a signed extension addendum with the new closing date before the original date passes.
• Line up the new date against your rate lock. If the lock will expire too, see our guide on open conditions and rate lock extensions.
• Recheck any document that might expire under the new timeline, like pay stubs, bank statements, and the credit report.

Earnest money and other contract terms

The contract also sets the earnest money amount and the financing terms underwriting will test against. If the deposit on the contract doesn't match what cleared the borrower's account, or the contract calls for a different loan type than the one you are processing, expect a condition.

• Match the earnest money on the contract to the deposit receipt and the bank statement. Our earnest money deposit guide covers what underwriters want.
• Confirm the financing addendum lists the correct loan program, since an FHA or VA addendum may have its own required language.
• Look for seller-paid items, personal property included in the sale, or rent-back terms that may need underwriter review.

Requesting contract fixes the first time

Because most contract conditions need signatures from both sides, the clock usually runs through two agents and four or more signers. A clear, specific request saves days:

• Send the request to the buyer's agent and copy your loan officer, and say exactly which page, term, or signature is missing.
• Name the document you need, such as "amendment reducing the price to $412,000, signed by all buyers and sellers."
• Ask for e-signed documents with the audit trail when possible, since they arrive faster and are easier to verify.
• Review what comes back for every signature and date before it goes to underwriting, so you don't resubmit twice.

Keep contract conditions from slipping

Contract conditions are easy to lose because the fix sits with people outside your office. Tracking each one as its own item, with who it was requested from, when, and the closing date it depends on, keeps a missing initial from holding up clear to close. If you are managing these across a full pipeline, see our guide on tracking loan conditions without spreadsheets, or try Conditionly to keep every open condition, request, and follow-up in one place.