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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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mortgage comittment
I thought we were sending in our paperwork for a pre-approval, but the bank sent us a comittment letter. (this is prior to contracts, etc.)... there is nothing else we have to do, right? we are guaranteed that money until the date on the letter (90 days from date of approval - it says committment ends on 2.28.07)
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Posted 11/28/06 3:50 PM  |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: mortgage comittment
have they done an appraisal on the property yet?
a pre approval means that the bank did their due diligence on you (credit check, verification of income, etc) and is willing to pre approve you.
a committment letter is a committment to lend - once they send a committment they must lend you the money. I wouldnt think that a bank would send out a committment letter without a property appraisal.
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| Posted 11/28/06 3:53 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: mortgage comittment
Posted by Meaghan729
have they done an appraisal on the property yet?
a pre approval means that the bank did their due diligence on you (credit check, verification of income, etc) and is willing to pre approve you.
a committment letter is a committment to lend - once they send a committment they must lend you the money. I wouldnt think that a bank would send out a committment letter without a property appraisal.
no, there was no appraisal because at the time we didnt even have a property in mind.
but the letter definitely says committment.
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| Posted 11/28/06 3:55 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: mortgage comittment
hmm.....i'll have to check my letter. i work in commercial lending and thats how it works here.
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| Posted 11/28/06 4:02 PM |
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Tine73
Member since 3/06 22093 total posts
Name:
*********
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Re: mortgage comittment
For some reason I thought 60 days was the max...
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| Posted 11/28/06 4:05 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: mortgage comittment
Posted by Meaghan729
hmm.....i'll have to check my letter. i work in commercial lending and thats how it works here.
thanks... I just want to make sure I am not thinking this money is guaranteed if its not.
our mortgage broker, who is a friend of DH is telling us everything is done, that it is cash-in-hand, but I am wary of everything in this whole process.
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| Posted 11/28/06 4:06 PM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: mortgage comittment
Some commitments still have conditions that need to be met prior to closing, such as a title report, appraisal, copy of contract. I have never seen a commitment prior to contract that had no such conditions.
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| Posted 11/28/06 4:36 PM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: mortgage comittment
Posted by BackInNewYork
For some reason I thought 60 days was the max...
You can have a lock in of 90. But you are stuck with that rate.
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| Posted 11/28/06 4:38 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: mortgage comittment
Posted by Hi-Fi55
Some commitments still have conditions that need to be met prior to closing, such as a title report, appraisal, copy of contract. I have never seen a commitment prior to contract that had no such conditions.
Thanks Dianne, I am gong to have to look at it more closely.
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| Posted 11/28/06 4:39 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: mortgage comittment
Posted by SweetTooth
Posted by Hi-Fi55
Some commitments still have conditions that need to be met prior to closing, such as a title report, appraisal, copy of contract. I have never seen a commitment prior to contract that had no such conditions.
Thanks Dianne, I am gong to have to look at it more closely.
my pre approval says "committment to lend" and just says that it has to appraise for a certain amount. and its good until 3/9/07. we better be closing before that 
in commercial lending a committment is pretty iron clad. I guess its different with consumer lending.
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| Posted 11/28/06 4:45 PM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: mortgage comittment
Posted by Meaghan729
Posted by SweetTooth
Posted by Hi-Fi55
Some commitments still have conditions that need to be met prior to closing, such as a title report, appraisal, copy of contract. I have never seen a commitment prior to contract that had no such conditions.
Thanks Dianne, I am gong to have to look at it more closely.
my pre approval says "committment to lend" and just says that it has to appraise for a certain amount. and its good until 3/9/07. we better be closing before that
in commercial lending a committment is pretty iron clad. I guess its different with consumer lending.
Commercial is a whole new world when it comes to commitments. They are so much harder to obtain. They don't usually issue a firm commitment until all issues are usually resolved. (Environmentals are taken care of, leases have been reviewed, etc.). But I don't deal with a lot of commercial, so I can't really speak on behalf of that too well.
Residential commitments will always expiration dates that are far off. Just be more concerned with the rate expiration date. Sometimes that will sneak up on you. And if you have a nice rate, you don't want to lose that, especially nowadays! 
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| Posted 11/28/06 5:07 PM |
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