Mortgage Financing
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If the sale has a financing contingency, the buyer must obtain a mortgage commitment by the date in the contract. If the commitment is not obtained by this date, or any agreed upon extensions, the seller could cancel the Contract.
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The commitment is issued by the buyer’s mortgage lender after the lender has put the loan application through processing (document gathering) and underwriting (document review).
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Your lender will complete a mortgage application with you and will ask for documentation regarding your finances. Be prepared to provide bank statements, pay slips, W2’s, tax returns, etc. and to explain any unusual deposits to your accounts.
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Keep copies of everything you provide and be prepared to resubmit those items. Stay on top of your loan officer and on the loan processor to make sure that the process keeps moving forward.
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The lender will have an appraisal performed to confirm the value of the property.
