TIMELY POST ABOUT LOAN COMMITMENTS.

Sally and David write about a task that falls to the listing agent or selling agent.  This critical contingency related to financing, is one that many agents overlook and buyers and sellers almost always overlook if they understood it at all.

I just finished sending an e-mail to a loan officer, his processor and the buyer and seller REMINDING them of the date certain for the financing contingency to be removed or the contract can be voided by the seller.  What's the date??  July 7th.  That means that we must have a COMMITMENT letter from the lender by then and 3 of those days are weekend days when only the agents will be working.


"Loan Commitment IS a Very BIG Deal!", Sally and David.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

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Via Sally & David Hanson WI Realtors Luxury\Short Sale\CDPE\ABR\e-Pro\REDS (Keller Williams 414-525-0563):

  We recently had a transaction....almost one that fell apart (BIG OUCH !)  because the Selling agent and buyer were not conscious of the contractual date for loan commitment.  When we are counseling a buyer Or a seller we explain that as the day that the contract says that not only is the buyer "financially fit" to buy the house.... it also says the house meets the appraisable standards for the price that the buyer agreed to pay and the Seller accepted.

watchdog    This is, in Wisconsin, on our  contracts (we qualify this since it is the only state in which we are licensed) and watched closely by agents on both sides of the transaction...or should be....missing, ignoring, forgetting that date means the buyer is "out of contract" and risks losing the opportunity to purchase the house. Often Buyers are not conscious of this date...it may be a first time purchase or they regard it as a detail that the agent they trusted will be vigilant in watching and insuring paper is shuffled properly by the lender on a timely basis.

    Clues that this may be a problem include:

      - Lender has not requested or followed thru to be sure an appraisal has been ordered and returned.

          (As a responsible listing agent you have logged when the appraiser requested access to the property and if this is not done contacted the selling agent and/or the lender.)

     -   The buyer(s) should be sure that every bit of financial information has been provided from tax returns to pay   stubs...and that this information has been given to the lender on a timely basis and legibly.
     -    As a responsible selling agent....you have carefully cautioned the Buyers not to buy the.....appliances, new furniture, new   anything or co-sign a loan for sister Suzy's new car that may jeapordize their debt to income ratio.

 

        Part of the very important job on BOTH sides of the transaction is to be the watchdog to be sure that all parts of the contract are being followed on a timely basis.....there is not "it's not my lender....the buyer's choice...." YOU are the professional...be responsible or risk a deal falling apart...an unhappy buyer and any legal complications that may result.

    If you are looking for an experienced agent in southeastern Wisconsin to buy or sell your home....and want the deadlines kept and the transaction closed in a timely manner...call the Hansons....you will get the prompt professional service and proven results you deserve.
 
  
   

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS

Sally K. & David L. Hanson  


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6 Comments on Loan Commitment IS a Very BIG DEAL ! Do your Watchdog Duty !

JUN
28
110,004 Points Called Shot Master

Good advice that many agents should take. Some think it is all done once the offer is accepted and the home inspection is done and a purchase and sale is signed.
5:07am • #1
1,979,960 Points 484 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Edward.  Right you are. 
5:19am • #2
593,772 Points 62 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master
Lenn, I do this too, the day after the offer is ratified. And we all get stuck with timelines that get pushed out that we can't control, but if we communicate early and often, and make sure changes are made contractually, we have a much better chance of keeping the deal going.
7:00am • #3
1,470,721 Points 27 Featured Posts Outside Blog Called Shot Master

Very good choice for a re-blog.  Many loan officers need to be constantly reminded of approaching deadlines.

Have a wonderful day and keep cool.
7:12am • #4
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Lenn, with everything that the Lender needs to do and verify these days a commitment is not going to happen that quickly, and if it does it will have a bunch of conditions that will have to be met before a clear to close.  These days Lenders have to get tax transcripts from the IRS, and Social Security info on every loan.  Also many employers will not verify employment over the phone and want an Employment Verification Form sent to them to fill out and return.  If the employer drags the feet in completing the form, that will hold up everything.  I hate asking for extensions so I always ask the Realtors that I partner with to ask for at least three weeks for Commitment.  We try to get it done quicker, but why start with a challenging date to begin with and have to ask for extensions later.
11:51am • #5
1,979,960 Points 484 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Karen.  As long as Time Is Of The Essence, someone has to watch those dates.  I've learned to not rely on others.

Roy.  They do indeed.

George.  The Contract of Sale does NOT say a commitment with no conditions.  In fact, it's silent as to conditions.

As I tell lenders, just give me the dang commitment and let me use it to get the attention of folks who can satisfy the conditions.

 
12:03pm • #6

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