No, Jeff we did not. It was extended until today...so we will see.
I guess these days the VA has such a backlog because of so many people applying for VA loans because they can do them with no money down. I will keep you posted.

I'm curious... did you close?

I'm in a very similar situation, except I'm the buyer with a VA loan that's supposed to close on friday without the commitment. My mortgage broker says that everything is going smooth and is confident we are going to close on friday. It's been in underwriting for a while, but my broker says that's how things are going these days (overwhelmed from all the refi's, extra careful after all the lax standards of the bubble). I guess what I'm saying is that it might be pushed back a little bit, but I wouldn't assume that there are serious problems with the loan or that the buyer is having trouble getting their financing.

The turntime to get a loan commitment varies. It depends in part on the skill and diligence of the loan officer and processor, in part on the attitude and responsiveness of the buyer / borrower, and in part on the underwriting backlog in the back office operation wherever the file is being underwritten. The underwriting backlog, in turn, depends in part on the type of loan: government loans such as VA are underwritten by different people than conventional loans, and conventional loans these days are divided between those that require PMI (i.e., loans over 80%) and those that don't. Underwriting turntimes in general have increased this year, because an increase in loan applications is coming after substantial industry downsizing. Still, a closing deadline 30 days after receipt of a fully-executed sales contract is generally adequate.

Note that a commitment letter does not mean a loan is in final approval, clear-to-close status. A commitment is an important step in the mortgage process, but it simply means a loan has been conditionally approved in underwriting, and all of the conditions required to close that loan have been set forth. For instance, outstanding conditions might include the appraisal, title work, and more. If a loan commitment has not yet been secured , then either the loan was denied in underwriting, or underwriting has not yet reviewed the file.

Sales contracts typically give sellers the right to be informed about the status of the buyer / borrower's financing. Regardless, if you're concerned, it would be prudent to ask your agent to inquire for you. If the buyer / borrower and their loan originator have nothing to hide, they should be candid and cooperative in discussing the situation. Transparency can vanquish uncertainty and increase confidence.

If you'd like to discuss this further, feel free to contact me: James Wheeler, 813-600-3428, jwheeler@apexlending.com

Jennifer,

As a listing agent I want the commitment letter at least two weeks prior to closing. Your agent and attorney should have been pushing for the letter by now. I would be on the phone Monday morning with your attorney and agent demanding the letter as soon as possible. The buyer needs to ask for an extension, which you have the right to agree or not agree to. I would be concerned at this point in time if I was your agent. This could be a sign the buyer is having trouble getting their financing. If that is the case, you've lost this time to market your home. Call your agent and attorney ASAP.

The loan processors at the company I work for have over 100 loans EACH. Some have upwards of 150 loans that they are processing. This is crazy for a loan processor and they are trying their best to get things done but things are VERY backed up. What used to take 10 days now takes 45-60 minimum. So it would not be unheard of right now for them not to have their letter until right before closing date.

You will need to sign an exrention. Buyer and Seller to a future closing date.
Sounds like the seller has run into some issues.

Jennifer-
Typically I look for a committment letter from buyers minimally 2 weeks before closing. Anything closer to the actual closing date than that would worry me, especially with the state of the mortgage industry right now. I agree with Scott that your listing agent/attorney should be able to help you get some straight answers.

If they are already a week past one deadline in your contract and do not have a commitment yet with less than a week before closing, I would be concerned as a listing agent. They may be putting any deposits in jeopardy as well.

I hope it works out for you. Ask your listing agent or attorney to get to the bottom of this Monday morning!

Take care,
Mike

If you have a listing broker/attorney they should be able to find out more details for you. I have run into a similar issue with a closing I had going. There is evidently quite a bit of refinances etc. going on and with all the new rules for mortgages they're even slower making sure to verify everything & re-verify everything.

Hopefullly commitments typically used to take 30-45 days but lately have been running a bit longer. I haven't dealt with a VA loan lately but I can't imagine it's going to be much faster. You might ask for the buyers to furnish you with a written explanation from their lender as to what is holding everything up. You might also consult with your own mortgage professional to find out more about the exact requirements of the loan package your buyers will be using.

Hope that helps

That is step 1 when working with buyers. I would not let a buyer in my car unless they had a letter of approval, and were fully ready to get a commitment as soon as an offer hit contract. But you are obviously in a situation. Your best bet is to sit down and talk to the Seller Agent, tell him the situation, and ask for an extension. Contracts can always be changed with the initials of the affected party, so you might as well do it. On the other hand, you should speak with your buyers also, and see how serious they are about buying this house. That's just my opinion though, good luck with everything, I hope it hits the closing table!

Anthony Candelario
407-802-0360