What time is it? It's COMMITMENT time!! Has your commitment letter been on time?

MORGAN.... . I think many of us commenting would agree with that, that we all need to be on the same page. And yes, the commitment letter, if real  { ;o) }, does let a seller know that it should be a go. I fired a loan officer 4 months ago, because they gave a commitment letter to the buyer 2 days after application, after he received their info. I was like you have to be @$@^!^! ... he said that they did this all the time at the other company. I said.. common sense, the underwriter hasn't even looked at this.  What a big law suit happening... thanks

ANDREA..... wow, that is awesome. Out of every 10 borrowers, I might get one call from the buyers agent asking the same.  I think too many put too much stock into the pre-qual letter or the pre-approval letter.  I even got some weird looks (well, it was over the phone, but I could sense weird looks), when I brought to a realtors attention that I felt that we weren't going to make a commitment date... (for what ever reasons).  But I put myself out there from the get go.  So the same can be said for loan officers also.  thanks  PS>.. I am not perfect, things happen... but communication is essential.

ROLAND......  I will agree 110% about this and have written about this several times. Just as I have said that many good faith estimates aren't worth the paper that they are written on.  Overall, I think we all need this reminder, more than occasionally.  I know it helps me to remember also and keeps me focused on stuff like this.  thanks

NEAL.... you are absolutely correct....  even though if we fail at the task of handing out a commitment letter, all we do is get yelled at, called names, and threatened...  but it won't hurt us when it comes to money... well, we could lose business, but we don't lose the deposit, the buyer could.  Excellent point. Overall, I think most commenting, will state the same as you have said, that the realtor should speak to the loan officer to make sure. I will always call the borrower and then the realtor, if I see something, before I am asked... unless they beat me to it.  But yes, communication... thanks for the feedback & for your input.

CHRIS.... . wow, 100% of the time?  That is pathetic.  I know someone wrote a comment that if a lender misses a commitment date, just find another lender. I semi disagree, because things happen.  Pointing the finger could drag out any solution that could be obtain.. delaying a solution. What's that, calmer heads prevail?  And yes, 3 weeks is not acceptable... I would love to know their reasons though, because I hate passing judgment, until I know all facts.  thanks for your input and for the polite compliment.

REALTY DOT COM...... okay, that was short, but sweat.  I think unacceptable is a harsh word if you are saying that 1 day would be unacceptable.  Because I have had realtors put on contracts just 2 weeks or less, and if it's a tough deal, that could delay things right then. Hey, don't get me wrong, I am a stickler for things, but you also have to be flexible, understanding, and never jump to conclusions too quickly.  thanks for stopping by.

SHELDON..... yes it is...  ;o)   I don't care if the realtor or the borrower thinks it's hounding me and such. I will not hide and answer my phone. As many of us agree, just being on the same page is key, which is part of communication.

On another note, yes, it was great catching up some today. Hopefully we'll meet sooner or later.

LARRY.... .  of value, you mean that it would be accurate and real?  Not just a piece of paper to meet a deadline, when it might not have ever been received by the underwriter at first? And yes, I have seen that were very basic with many holes, that you knew it was going to blow up at settlement. And thanks for the polite compliment.

CHRISTINE......  I would agree 110%... and if I get an agreement of sale that has a commitment date or a closing date that might be in question, that might be cutting it close, I will bring this to everyones attention. But as I mentioned, it should start with the buyer's agent, calling up the loan officer (if they don't know each other), to see if the dates would be okay before they put the dates in the contract.  thanks

MARIAN..... I would agree with that statement, but 97% of my clients, and even some realtors, don't know me.  So trust is important, but most in this business can get you to trust them just by making promises or guarantees.  And by doing this, it makes others feel comfortable.. then the problems happen.  But I agree, many things can make or break a deal.

GENE..... well, that doesn't make sense... but how many REO's that you know settle in 30 days even if the lender is ready to settle. I am finding many have problems at the end, because the bank forgot to do this or forgot to do that. So what happens then is you have people rushing for something that has a great chance of being delayed.  Just my opinion.

ERNIE..... yes, many of us agree that the realtor should communicate with the lender also... and vise versa.  But I will somewhat disgree and or stick up for lenders in general, that we should realize it's a competitive market. First off, you as a realtor should express to your sellers that this is the reality of it, that many lenders are in major delays.  But define major...??? Some would say 30 days and some would say 60 days. It should start with the clients expectations, no matter if they are the seller, the buyer, the realtor, or the bank that owns the property. 

In my honest opinion, in today's market, putting a commitment date on the contracts that are less than 3 weeks, maybe closer to 4 weeks, is just adding pressure to all... and possibly more mistakes. You have to take in account on how quickly an appraisal can be done and given back to the lender.  You have to account for the time when the actual application is taken or if the buyers delay this... and account for weekends. If I took an application right now, on Friday at 2 pm...  and then turned it in, you already just lost 2 1/2 days.  I might not get it back from underwriting now until May 27th or so... keep in mind, Monday the 25th is a holiday.  These are things that need to be recognized by everyone involved. So I have a slight problem with your comment that banks should know that it's a competitive market. To me, that's common sense. I think the listing agent needs to make all of this clear to the seller. But here is my thought process.  I bet you more than 50% of all realtors don't really talk about this... because they are afraid to give bad or negative news, which means that they are afraid to potentially lose that deal. Just like 50% or more of the loan officers don't really pay attention to the commitment date.

I will say this, I will agree that 60 days is rediculous.  But to have a normal closing, that time period should be set at 35 days, possibly to 40 days. Me?  Sure I can do them in 25 to 30 days, but it also depends on the deal, if it's a mess or not from the borrower's side of things.  And someone wants a 8 to 12 day closing, it can be done, but there is a small price and I will have to get people to drop what they are doing, which can delay other closings.  See the pattern and what can happen?  It all comes back to setting everyone's expectations to a certain level.  Thanks for your feedback.