UNCONDITIONAL MORTGAGE COMMITMENT vs. CONDITIONAL MORTGAGE COMMITMENT

Yes. It doesn't matter what the Seller thinks. The Seller wants the deal to close. And it's not closing until the loan is unconditionally approved and cleared to close. That's not happening until the condition is cleared, minimally. The buyer's attorney requests extensions to protect the buyer and will do so if there is only conditional approval.

It may not be a question of the seller having an "issue" with the the condition; it may be that the lender has an "issue." It is prudent and reasonable for the buyer's attorney to require an unconditional mortgage commitment.

Yes. It is the buyer's contractual right unless it is modified in attorney review. Most form contracts that have a financing contingency in fact do include the requirement of an "unconditional" mortgage commitment. One of the things I usually try to negotiate during attorney approval is that the clearing of open credit card accounts and providing evidence of paid homeowner's insurance shall not be required. Because every commitment will have at least the insurance condition, and I have found in today's economy some lenders want clearance of credit cards. The problem is you never know what the condition may be: "gift letter" (saying that no portion of the down payment is a soft loan from relatives but is an outright gift with no strings attached).... But again if I'm the buyer and the lender is saying they won't lend until there is proof of insurance, and it turns out the property is uninsurable for some goofy reason.....I've lost my contractual rights.