If you are using the standard KCRAR contracts:
BUYER may obtain Loan(s) different from those described herein provided that the terms of the Loan(s) do not result in additional costs to SELLER, delay the Closing date, or change the Loan approval time frame. These changes must be agreed in writing, by both parties, within 3 days of BUYERâ€™S knowledge and no later than ____ business days before Closing (15 days if left blank).
BUYER and SELLER are hereby informed that any changes to the terms below after the Effective
Date of the Contract have the potential to delay Closing and/or change costs due to federal regulations.
SELLER is aware that pre-approval is not a guarantee that BUYER will receive Lender(s)
LOAN APPROVAL(S). BUYER agrees to make a good faith effort to obtain a 324 commitment for the
Loan(s) within __________ calendar days (30 days if left blank) from the Effective Date of this
Contract (the â€œLoan Approval Periodâ€) or within ________ calendar days (5 days if left blank) prior to
the Closing Date, whichever is earlier.
If BUYER is unable to obtain a commitment for the Loan(s) within the Loan Approval Period,
BUYER or SELLER may cancel this Contract by written notice. If BUYER is unable to obtain the financing described herein, BUYER must provide written evidence of rejection from BUYERâ€™S
Lender(s). In either case, BUYERâ€™S Earnest Money will be subject to the provisions of the Earnest
Money and Additional Deposits paragraph of the Contract.
Hopefully this answers some of your questions - interpreting the legal ramifications of the contract would need to be addressed with an attorney.
Thanks and good luck in closing - If it is any consolation, i have had deals nearly fall apart over lending and have had great success in changing lenders if the first lender has reached a roadblock in underwriting. Each lender's underwriting rules can be different so keep the faith and try to work with your buyers to close the deal. It is usually still faster to re-do the loan for the existing buyer than to start looking for a new one.
Angela Shopper 913-707-6884