Mortgage Commitment Letter- Not a Stairway to Heaven. It is no longer a stairway to heaven (oh, we all loved
that Led Zeppelin song of a certain generation!) route to get a buyer's commitment letter. Even just waiting, hopefully, the 10-14 days after that mortgage commitment letter is received and to close on a piece of Rhode Island real estate may be longer than anticipated. Now why is that?
As lenders requirements tightened with Fannie Mae & Freddie Mac, so goes the quick steps to a loan closing.
Even if you are so called ’cut and dry’ buyers with W-2s and steady weekly paychecks the underwriters in the loan process will still ask for more documentation. You can squirm, fuss but you must get that information to your lender if you want that mortgage to make it to the closing table.
However, if you are like some clients, you might own a business and not always pay yourself consistently, have loans outstanding from family members, etc. So how far off is that mortgage commitment letter you wonder? Maybe weeks for sure.
And lo and behold the day before a mortgage commitment letter is to be issued, it IS NOT! The underwriters keep their piles of loans in front of them until THE day before commitment is due most times. Then review a mortgage file and send out what is called additional ‘conditions’ to be addressed by the buyer right away.
So to put it bluntly the closing table seems far off right now! The list of conditions is long, it may be a holiday weekend, your trusted CPA is away on vacation and the buyer is away with no paperwork at hand. Guess what? It is time for an extension for commitment letter and closing date!
Sellers understand 'uncontrollable things do happen' and stay calm and poised. Your deal will proceed.
If you own a business do not listen just to your mortgage lender, listen also to your real estate agent and get all your documentation in order- Early on!
Past tax returns, loans, explanations on money gifts made and have your accountant close at hand. Getting to that closing table is a long climb nowadays especially for small business owners buying Rhode Island real estate so don’t be disappointed. It is not YOU, it is the cumbersome mortgage process.
Sellers you need to be more patient with your buyers nowadays and agents need to have a steady rapport so all information is provided to get that mortgage commitment letter from the bank. Mortgage Commitment Letter- Not a Stairway to Heaven.
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Ginny Lacey Gorman is a North Kingstown Realtor who works and knows the North Kingstown RI geographic area of homes for sale, schools, happenings, important tidbits of information and businesses well. Waterfront, water view, ocean front, luxury and coastal Rhode Island real estate are her specialty. If your considering Buying, Selling or Relocating to Rhode Island and need a real estate Professional it would be my pleasure to help you! When you are in need of an internet savvy RI realtor® who sells homes in this real estate market, call Ginny today at 401.529.7849
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