Home Buying in 02043>Question Details

Amytorres777, Home Buyer in Hingham, MA

Commitment question

Asked by Amytorres777, Hingham, MA Thu Jul 7, 2011

I received a commitment letter with some conditions on it that I have already provided documentation for. They are standard conditions, but I am freaking out that I am suppose to close on July 15ht and i have not got a final approval on my loan. Is it typical to be a week away from closing and still waiting for the underwriter to tell you that you are good to close? What does it mean to have a commitment letter? Do underwriters usually deny a loan at this point? All of my paperwork matches my application and I have told the truth about everything.

Help the community by answering this question:


You now know the difference between any old commitment letter that the bank will happily print for you with dozens of outs for them to NOT close the loan written in there ( especially like the ones that are subject to any other underwriter criteria or something of that ilk ) and a true clean commitment or even better, a clear to close.

Extend your commit date until you have something with every contingency that can be removed prior to closing ... already removed. A good buyer agent and atty protecting your interests should demand as much of your lender.
0 votes Thank Flag Link Tue Aug 23, 2011
You are in the same boat as all the other buyers getting a loan.. A commitment letter means not too much to the bank when there are conditions... They may get your docs they requested and come up with new docs they need or new conditions that may not be satisfied. The most important part of the process is your loan officer and how knowlegable they are. If you have gone to a branch to apply they rareley have access to the underwriter or the processors.. If you applied with the loan officer who has access to processors and underwriters he or she should be able to tell you what they are thinking and what is going on..

But in short banks go in their own pace.. They somewhat try to accomodate the closing date but when they can not as some of them are so big each department has a lot of backlog they do the best they can. Your loan officer should be the one who should be pushing for you. The other would be the closing agent.. They can also ask for documents and ask for when they will get them..

Sit tight and do not worry.. But pay attention to the contract you have and how they mention the commitment letter... What sales contracts mean with commitment letter and what banks mean are not one and the same.

Good luck..
0 votes Thank Flag Link Mon Jul 11, 2011
Amy- I would call the lender and ask directly what paperwork is hanging still. 4th of July could have seen some staff members of HR on vacation etc. But your lender will tell you what the blip is.. Great to see how pro active you are! Your agent should be helping as well...
0 votes Thank Flag Link Thu Jul 7, 2011
It is not uncommon. Simply call and confirm with your loan officer and resubmit. If the information you've submitted to satisfy the conditions is accurate the lender will move forward with the loan. Lenders are looking for well qualified and capable buyers. Best of luck with your new home.

0 votes Thank Flag Link Thu Jul 7, 2011
Dont worry this is very standard
0 votes Thank Flag Link Thu Jul 7, 2011
Amy, your lender needs to clear you loan to close within 48 hours of your closing date. This is such so that the lender can get the closing paperwork to the closing attorney in time for it to be reviewed and ready for you. You should still have plenty of time, and if you have sent the lender all they have requested, then you should be in good shape. This is a stressful time for you, but all will be okay.
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0 votes Thank Flag Link Thu Jul 7, 2011
This is pretty typical in this new lending environment. They don't usually deny the loan at his late point. But sometimes when you turn in some conditions. It might go through under writining and it opens up new questions and other conditions Like a larger deposit in your savings account. I would talk with your real estate agent for advice s/he should be on top of it, and also with your lender. But this is not out of the ordinary for the buyers to feel like they are just strining you along..Good Luck and hope all turns out well
0 votes Thank Flag Link Thu Jul 7, 2011
Amy - In today's lending environment, you can sometimes wait up until the morning of the closing to get a "clear to close" from the lender. I wouldn't worry too much if these are standard conditions you have already met. The lender likes to play it close to the vest and have the ability to pull the loan if underwriting calls your employer the week before the closing and finds out you no longer have a job or your credit score took a major hit. This is the "new normal". Good luck and enjoy your new home.
0 votes Thank Flag Link Thu Jul 7, 2011
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