Thread: Question about mortgage commitment

I thought they answered this question for you on agents on line already.

From what you wrote, everything sounds normal to me.

Originally Posted by Greg

I thought they answered this question for you on agents on line already.

From what you wrote, everything sounds normal to me.

I didn't know that the forums were directly related. If they're not, posting on two forums is perfectly normal.

In most cases, when a lender gives you a "commitment" it's important to understand that even with that "commitment" there's still no guaranteed. At the last minute the underwriting standard/requirement can change and then the loan might not fund.

Usually, the conditions you mentioned are especially common in the preapproval letter. I like these items to be squared away shortly after mutual acceptance. That way, less issues are likely to arise at the last minute.

Because the financing addendum is in there (almost always the case, unless it's a cash buyer), the buyer can get their earnest money back if they don't qualify. You should do your diligence in making sure the buyers are qualified and get status updates on the loan process which you should be entitled to (NWMLS form 22a allow for this).

I hope that helps.

Best,

Originally Posted by seattle realty

In most cases, when a lender gives you a "commitment" it's important to understand that even with that "commitment" there's still no guaranteed. At the last minute the underwriting standard/requirement can change and then the loan might not fund.

Usually, the conditions you mentioned are especially common in the preapproval letter. I like these items to be squared away shortly after mutual acceptance. That way, less issues are likely to arise at the last minute.

Because the financing addendum is in there (almost always the case, unless it's a cash buyer), the buyer can get their earnest money back if they don't qualify. You should do your diligence in making sure the buyers are qualified and get status updates on the loan process which you should be entitled to (NWMLS form 22a allow for this).

I hope that helps.

Best,

Thanks. I've only been concerned about this because the whole transaction and paperwork seem to leave so many open ended questions. The commitment has so many 'outs' for everyone involved, I'm not sure it's worth the paper it's printed on. I've decided to consult an attorney, not for retainment purposes, but only for an impartial view of the paperwork.

Originally Posted by greenponder

I am a seller and have a sale contract on my property. The inspections and appraisal are all done.

Yesterday was the date specified in the contract that the buyer had to produce a mortgage commitment. I inquired through my realtor who received from the buyers agent a letter dated on yesterdays date with the commitment but with a condition rider. Some of the conditions were standard fare but also included things like W-2 requirements, depository requirements for the down payment, PMI and some other stuff.

My question is this; I would have thought these items to have been cleared up long ago. I had had some concerns over the buyers financial ability to afford the home and this doesn't seem to be a finalized deal yet.

I am in no pinch to sell my home, I have another and I'm not opposed to putting it on the market.

I sent a letter to my realtor this morning, which was sent to the buyers agent, notifying them of my intention to terminate the contract if this commitment is not sound. I just wanted to make sure this wasn't an open ended thing.

Any thoughts? Thanks for all your help.

What does your real estate sales person have to say? If this type of letter is normal in your area, then you have a normal transaction. If this type of letter is not normal in your area, then you should find out why.