Question Details

Michael Giles, Real Estate Pro in Beverly, MA

I just had a spirited debate with a Listing Agent. As a rule, how far back from closing do you normally set the mortgage commitment date?

Asked by Michael Giles, Beverly, MA Sat Apr 27, 2013

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I've in the business of obtaining "mortgage commitments" and in real estate sale, and in escrow business since 1982. I guess I will try to give a most precised answer to yopur question. First of all the expression "to set the mortgage commitment date" is not proper. As the seller you can make your sale contingent on the obtaining of loan approval, which could a part of mortgage commitment, by the buyer by certain date. In California it is usually 17 days as per CA Residential Purchase Agreement. And if your escrow is 30 days, which is a standart term with our company, CalSun Mortgage, than you are looking for 13 days before close of escrow.
0 votes Thank Flag Link Mon Apr 29, 2013
Here, we don't set the mortgage commitment date back from "the closing", per se.......we set it as 30 days, going forward, from having fully executed contracts .

If the closing is a far off date, beyond 60 or 90 days, the onus is on the buyer to have the commitment updated if necessary.
0 votes Thank Flag Link Sun Apr 28, 2013
30 days here in my neck of the woods. But I'm sure to alert my sellers from the get go (acceptance of offer) that we very well might need to grant the buyer an extension due to underwriting delays.

Among the sweetest words I ever hear are "clear to close." : )

Broker Associate, GRI
Lang Realty
9858 Clint Moore Road
Boca Raton, FL 33498
0 votes Thank Flag Link Sun Apr 28, 2013
AZ contract state 3 days prior to the COE.
0 votes Thank Flag Link Sun Apr 28, 2013
30 days from acceptance of offer is what we use here. There is no set time that everybody uses. Each agent is different. Good luck to you either way!
0 votes Thank Flag Link Sat Apr 27, 2013
I the San Francisco Bay area, it's been just about 15 days.
0 votes Thank Flag Link Sat Apr 27, 2013
For years, we used the standard 17 days;
Lately, due to all the factors, we have changed to the wording "3 days before Escrow Closes":
This allows for the fact that things take longer, and we might have to change Lenders at the last minute.
It's all about protecting my client.
0 votes Thank Flag Link Sat Apr 27, 2013
Hi, Michael: In my part of the world, the standard contract sets the loan commitment as "30 days after contract acceptance or 10 days prior to closing, whichever is earlier." That can be modified with a special agreement.
0 votes Thank Flag Link Sat Apr 27, 2013
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