Wow! You had offer accepted on 9/30 and you can't make settlement on November 12th, that is crazy. It shouldn't take more than 3 weeks start to finish on a loan. I would say you can keep settlement date of November 12th no problem. If you want to have your loan done with no problems, give me a call 302-588-3665. I am actually working on another file right now that an agent asked me to get done because previous bank couldn't get it closed on time. you really don't have to extend settlement, you still have plenty of time to get this deal done. If you just want a second opinion give me a call.
John Thomas - Certified Mortgage Planner

Offer: 9/28 from seller
Buyer agreed sale: 9/30
Inspection agreement addendum agreed (Almost except settlement date): 10/19

Termite date: 10/23
Mortgage commi: Nov 6th.

Buyer wished to extend settlement to 11/19 from 11/12 (Due to this) - seller and buyer agent did not support until yesterday. Lender called buyer agent and recommended for date change to 11/19. Status: Buyer agent talking to seller agent.
-Would appreciate your suggestions -

If you made application today, closing by the 12th would not be a problem for me. We have 24-48 hour underwriting turn time. So I could have the comitment with no problem by November 6th. We could definitely close by November 12th. When loan is locked in Delaware you are suppose to sign a Delaware disclosure form that says whether your loan is locked or not at application. You should also receive a copy of everything you sign. Your lender is required by law to provide your with a Good Faith Estimate and a Truth in Lending at the time of applicaiton or within 3 days. If you would like a second opinion from a local Mortgage Banker that can definitely close you by the 12th of November feel free to call me at 302-588-3665 (cell phone) . Please visit my website for more info. You can also register for our First Time home Buyer seminar this saturday October 24th at the Christiana Hilton Hotel in Newark, Delaware

It's hard to comment without knowing all the facts. When did you make an offer and when was it accepted? To try and get a loan commitment by Nov. 6 ,close Nov. 12, and applying for a loan today would make this that fastest deal I have ever heard. I would tend to agree with the lender on this one.

Thanks to all the experts.

Here is a situation in DE.

Background: Loan commitment date Nov 6, 09 and settlement date Nov 12th. Made a loan application today as 1st time buyer.


Question: Lender says it would be difficult to achieve these dates and is asking an extension for a week (Siad would talk to Agent to convince). We are concerened - will we get $8,000. What isyour take on this situation? Would appreciate your timely suggestions on this. My agent may not knwo everything.

When rate is locked, do buyer get a receipt from lender? and a copy of application?

1) A mortgage commitment date is the date when your lender must present the seller with a mortgage commitment. This is an approval once the file has been underwritten. The commitment can list outstanding conditions to clear the loan. It is a date by which your loan must have been underwritten and approved.
2) If you don't make the commitment date you can ask for an extension but the seller must agree. The seller doesn't have to agree to an extension so very important you are working with a lender that can get your loan underwritten on time.
3) If settlement date is not met because of something on your side, you have to ask the seller for an extension. The seller can agree, can reject it or ask for more money from you in order to extend. If missing settlement is seller faults, then you can agree to extend, you can reject, or counter asking for money from seller.
4) You can look at as many lenders as you want but it is best to work with a lender that you feel you can trust. You have to make application with a lender typically within in 7 days of signing a contract. There is usually a 7 day mortgage application date on Delaware sales contracts. I would also recommend working with someone that is local because most out of state loan officers don't understand Delaware fees and the fact that you must use a Delaware Attorney for your settlement. You should get yourself educated. Please see link below for list of free Home Buying Seminars in Newark, Delaware

1. What is mortgage commi date? The lender should provide the loan commitment letter within 20 days of the binding agreement date.
2. What happens if mortage commitment date is not met? If your buyer's agreement says you are to provide one, then you should. First you have your approval letter from your lender which means he has done a general check of your situation and agrees taht you could a loan for a maximum amount, after you have a buyer's agreement then he will start the loan process. The letter is just to show the seller that you have done what you are supposed to do and the lender has gone forward in the loan process, the commitment letter is basiclly a guarentee to the selller that you are financed.
3. What happens if settlement date is not met? Hopefully before that date you have agreed to an extension. If not and the seller has met all of his contigencies and you the buyer have met yours and you miss your closing date you would be in breach. A contingency in the contract would have to be met for you not close, meaning the appraisal wasn't enough for the loan, you couldn't come to an agreement on the inspection of the property or if you had a financing contingency and couldn't get financed you would be cleared from the contract.
4. Can buyer seek more than 2 lenders to sort out the best rate? Before how many days buyer has to decide one of them? I would suggest doing this before you start your home search because you want to have a pre-approval letter when you are ready to make an offer.

I hope the information is helpfull. If I can answer anymore questions, feel free to contact me.

The mortgage commitment date is a date written into the contract that a buyer must have their mortgage secured by. If the buyer can not secure a mortgage by that date, they can ask for an extension period. The seller will either grant the extension or they can deny it and the contract is null and void.

You should be pre approved at the time you write the offer. You can shop around and switch lenders, but doing so may cause you to miss the deadline on the contract. It's best to choose a lender before you write the offer. Most mortgage contingency deadlines are 30 days out from the time the offer is written. Some are as long as 45 days. This is usually the amount of time needed by the lenders to complete the loan process. If you switch lenders during this process you could be pressed for time.

A lot of the questions that you are asking are answered in the mortgage contingency clause of your agreement of sale. Refer to this and consult with a local Realtor/real estate attorney for specific answers to a specific transaction.

To answer some of your questions:
1. The mortgage commitment date is the date by which the lender states in writing that they commit to fund the loan to the buyer according to the terms and conditions set forth in the commitment. Many of these terms and conditions are cleared just prior to closing: i.e. verification of employment, etc.

2. What happens if the date is not met....depends on the terms of your contract.

3. What happens if settlement date is not met....again, it depends on the terms of your contract.

4. It has been my experience that buyers do their homework ahead of time and only make application with one lender because they incur fees when they apply for the loan. One must refer to the contract to see how many days they have from time of contract to apply for the loan.

Best of luck to you.....