Deal or No Deal ??? Loan Commitment IS a Very BIG DEAL ! Do your Watchdog Duty !

Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

  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 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 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 responsible or risk a deal falling 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 the will get the prompt professional service and proven results you deserve.

Posted by

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

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 06/27/2012 09:45 PM
Home Buying
loan commitment
contractual obligation

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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good advice to watch for loan commitment date. Some lenders do not take it seriously and I have had  to call them several times to get the commitment.

Jun 27, 2012 08:35 PM #1
JOSH EVANS *JoshEvansHomes 516-655-5000
Village Properties of Mineola, LLC - Mineola, NY
Great blog and great job. Keep up the good work and good luck to you this year. Thanks.
Jun 27, 2012 08:43 PM #2
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Sally and David,

Acting as a watchdog is a good way to put it. I often feel half our job is checking, rechecking and checking again!

Jun 27, 2012 09:19 PM #3
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Sally and David I see someone has been by to visit.  Take a look at Roger's post this morning.  Have a great day

Jun 27, 2012 09:43 PM #4
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great post and timely too since I just made a follow up call/email again this week to the buyers lender for loan commitment..I always write all dates down in my planner for each and every transaction and keep an eye on it days ahead of time...well done!

Jun 27, 2012 10:46 PM #5
San Antonio Texas New Homes for Sale - San Antonio, TX

Hi Sally and David...

Very good information for all parties involved ....

Buyer Representation with the right Realtor

Looking at homes easy

Writing contract easy

Closing can be easy if all the bases are touched ...but getting people to understand the proper sequence is so important !

Thant's why getting 100 percent approved at the beginning is so important


Saw this from Lenn Harley 's reblog and suggested !

Great Article on Financing and Closing !!!


Jun 27, 2012 11:14 PM #6
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

It is amazing how this is so easily dismissed/ignored as not being a very vital part of the contract....the answer I got recently from the selling agent: "Don't blame me, I didn't pick the lender".....yicks !

Jun 28, 2012 02:44 AM #7
Janna Scharf
Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID
Coeur d'Alene Idaho Real Estate Expert

Especially important to keep a sharp eye on those time sensitive dates in this day and age with lenders really raking the buyers over the coals!

Jun 28, 2012 06:34 AM #8
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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