Home Buying in Buffalo>Question Details

Ali, Home Buyer in Buffalo, NY

My mortgage bank said he will giveme conditional committment letter after getting the sale contract. Is itok?

Asked by Ali, Buffalo, NY Tue Nov 25, 2008

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Ali,

Check your contract you signed, but most agents include a clause that says you are buying contingent upon getting mortgage financing acceptable to you (such as at a certain rate, or type of loan) and the commitment within a certain time period (standard 45 days but can be shorter).

A commitment does take a while and it's really just contingent on the property and you providing the bank what you said you would at the time of application. Local bank? I wouldn't worry too much about it.

Stay on top of your lender - it's taking banks longer and longer to issue commitments.
0 votes Thank Flag Link Tue Dec 2, 2008
Hi Gail,
My lender(bank) says it can give me commitment letter only after it gets the contract and appraisal of the property, and my lawyer said after signing the contract, I have to put downpayment check in the escrow account. So, I am worried if something goes wrong with mortgage, my check can be lost as the lawyer if there are problems from buyer's side, the downpayment check is confiscated.

I have DU underwriter's findinds page from the bank and a confirmation email that I am approved but no commitment letter? Is it ok?
0 votes Thank Flag Link Tue Dec 2, 2008
Ali, a conditional committment is different than a ( pre- qual ) letter which you should have had in place before even placing an offer. After the offer was accepted, the first thing to be done is the contract is to go to the attorneys and to your lender. Its all standard procedure. Where is agent ? that is what they are for.
0 votes Thank Flag Link Tue Nov 25, 2008
Ali, the best buyer in the market today is one with a Lender Pre-Commitment. However, you should get this NOW and tell your lender you are only interested in allowing 2 contingencies; contingent on getting a contract and contingent on the appraisal of the property.

Having this in your hand now (do not wait to get a contract) will make you the best buyer out there.

Make sure it is issued by the lender and not the mortgage broker...GET IT NOW!!!
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Tue Nov 25, 2008
That depends on where you are in the process, if you have already been provided a pre-approval letter and had you credit and income reviewed and have bought a home (entered into a sales contract) Yes its ok, conditional commitments are provided on almost all contracts they include appraisal, usally the few odds and ends such as provide 2 pay stubs, and things that you cannot do until you have a contract, health certifications, homeowners binders, title review by bank attorney,

It is only a problem if your lender is saying they cannot provide you any sort of approval letter or document prior to your making an offer, if that is the case it raises red flags with the seller, making them leary of accepting your offer, and I would suggest you find another lender to talk to and get pre-approved with full review of income and credit.
0 votes Thank Flag Link Tue Nov 25, 2008
It is common to get a conditional committment after the bank receives your purchase and sales agreement. The conditions usually are subject to an appraisal of at least the sales price and may be subject to verification of your employeement. Hopefully they have all of your financials including banks statements, pay stubs etc to move things along for you. good luck with your purchase
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Nov 25, 2008
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