Extension for mortgage commitment? (loan, loan, lender, contract)

[xbure9x]

I am currently in the process of selling my home, the contract for the home was signed by our prospective buyers at the end of January, and we signed it the beginning of February.

In the contract it stated that they have 45 days from date of contract to get their mortgage commitment. Well, the 45 days came and went and their lawyer asked for a 30 day extension, to which my lawyer gave them 15 days.

This Sunday will be the end of the 15 day extension, and the only news I have received so far was a phone call on Monday of this week from my lawyer, stating they spoke to the buyer's lawyer who supposedly spoke to their mortgage broker who said they would have the commitment by the end of the week.

As it is already thursday, I am getting rather anxious and nervous about the whole thing. What would typically be the reasons for not getting a commitment in the initial 45 day period and should I be concerned, or is this just a paperwork issue? I was told their needed to submit more paperwork a couple of weeks ago, but everything I hear is hearsay and a bunch of "supposedly"s.

Bear in mind, this is holding up the new house I intend to purchase, as well as holding up the seller of that house on their new home purchase, so it is all turning into a big mess.

Oh yeah, closing date in the contracts on both houses was written in as on or about March 15.

[ChipL]

It actually could be for any number of reasons.
Lately I've seen lenders increasing their turntimes on FHA files due to everyone now going FHA. They are anywhere from 4-5 days for the good ones, to 19 days for one slow one in particular. That's just to get the conditional approval, and then there's the submitting conditions and clearing the loan to close. So, it could be as simple as that, that the mortgage broker was using a lender they didn't expect to take so long because as of last month their turntimes weren't so long.

On the other hand it could be problems with the borrower's supplying the needed documentation. Maybe it's a document they are having a hard time obtaining, and that is holding things up.

If you have RE agents in the deal get them in touch with the buyer's mortgage broker and find out from the horse's mouth what exactly the hold up is and when they can honestly expect to close. If not, call the buyer's atty, and get them to give you or your atty the mortgage broker's contact info and get the info that way.

You should not be in the dark, and you should know exactly what is going on, or at the very least, the atty's should. So, don't feel as if you're stepping on anyone by doing that. The broker should be calling around and advising everyone of the issues anyway.

Remember, though, it really might not be a horrible thing. it could just be time issues. But, in case it is something that has a chance of not being overcome you need to be aware of it so you can make your plans accordingly.

Hope this helped.
-chipl

[IHO]

My commitment date is feb.12, and i want to put money in my account to help pass underwriting. I have a shared draft account.cant i put the loose money in to my savings and then transfer it into my checking,without looking suspicious? I gave iformation about my checking account originaly,not my savings account! I want it to apear as if that money was in my savings all along !

[dad2jules]

It will show up in checking and the UW will want to document the source of the funds- you give savings account statement which also will show it is not seasoned (in account for 60 days or more than 2 statement cycles) so you will then have to produce statement for account from which it came from which you said was joint so that opens more questions.

Can you see how this can get messy and delay things- don't do anything before speaking with your LO. If you need more funds you can just show the statement of joint account with a signed letter from coholder giving you 100% access to funds in the account.