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Rick, Home Buyer in Gloucester, MA

Is it common in Mass. do ask for an extension for financing?

Asked by Rick, Gloucester, MA Tue Nov 22, 2011

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I am seeing a lot of this now. Before it may take 21-30 days from acceptance for a letter of commitment from a bank or mortgage lender. Now with so many banks becoming stricter on lending and more inventory selling, appraiser are swamped. It is also taking a lot longer for under writers to complete the packet.
If you are waiting on your letter of commitments and are nearing the deadline , ask your agent or lawyer to draw up and extension to financing and submit to the seller side. Hopefully they will sign. As a buyer keep on the lender to find out how things are coming along, what other additional information might they need , ask when they might be able to finalize the commitment and share with the seller.
If you do not stay within your dates , then you fall out of contract. If the seller just happens to have a back up offer in place, you could miss out on the home you wanted if you were unable to meet your commitments to seller as stated in offer and /or purchase and sales agreement.
Michele Allison-Elwell
Remax Advantage
224 Washington St.
Gloucester, Ma
Remax By The Rotary
0 votes Thank Flag Link Sat Jul 21, 2012
I would not say that it is common however, if the time from accepted offer to close is a tight window, you may need to request an extension especially if there are some unforseen circumstances. Your best bet is to have your financing pretty well locked up before you start the process. This way you will not go down to the wire in getting your commitment from the bank. Neither buyer of seller wants that stress especially if seller is trying to arrange plans of their own.
0 votes Thank Flag Link Mon Nov 28, 2011
Pretty common but again, like everyone points out, it depends on the circumstance. Sometimes the need for an extension could be a bad sign but most cases it's just the bank is swamped and the buyer / lender underestimated the time needed to commit the loan.

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0 votes Thank Flag Link Mon Nov 28, 2011
It is very common if you try to close in a tight window. It depends on many different things.
0 votes Thank Flag Link Thu Nov 24, 2011
Hi Rick,

I'm here in MA and Yes, it is common to seek a financing extension ... of course depending on if the original time was not adequate. They key to you as a buyer is to make sure you have a very clear financing commitment before letting your protection lapse... any bank will provide a commit with a million exemptions and caveats... you want to take the time they need to issue a clean commitment or even better a clear to close, before you risk your deposit.
0 votes Thank Flag Link Wed Nov 23, 2011
Rick,
It's not uncommon anywhere. Many lenders are swamped with the low rates. Others are overwhelmed with short sales and foreclosures. You don't mention why you are requesting an extension, but if it's for financing it’s not uncommon.
If there are other reasons, you can ask the seller for one, but they may request you do something for them in return. This could be a release of earnest money or paying the seller's daily carrying costs.
Remember the seller is trying to make plans too. They may need the proceeds of their sale to purchase their next house; your extension will translate to them needing one and perhaps their seller's too.
0 votes Thank Flag Link Tue Nov 22, 2011
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