Mortgage lenders: are commitment letter/loan approval/clear to close binding on the lender’s part *if* we comply with all final conditions?

We have been issued a clear to close and AFAIK the closing representative has been working with our attorney to schedule a closing date. Our “commitment letter” is a conditional approval that says “This conditional approval is not binding unless the lender receives the borrower’s acceptance within 10 days. The lender’s obligation to lend expires if the loan doesn’t close within 60 days, unless the lender sends a written extension.” It also says the approval expires mid July which is not 60 days from the issuance date.

I asked our LO why it says the approval is not binding, and what we can do to formally accept the approval so that it becomes binding on their part to lend, provided that we don’t make any changes on our end or financial profile. The LO is taking very long to answer. There is a short gap between our mortgage commitment deadline coming up soon, and closing as of now (closing this Friday or next) but there is a risk of closing delay by the seller. I want to ensure we carry no risk of having our mortgage approval revoked by the lender due to no fault of our own (if they’re going out of business or our loan program is discontinued or some other reasons) during this gap because our deposit is rather high.

Our attorney has been doing third for 35 years and said he has never seen this hypothetical situation happen. But are we crazy for requesting that the conditional approval have the accurate language?

submitted by /u/jeweledbeanie
[link] [comments]

We have been issued a clear to close and AFAIK the closing representative has been working with our attorney to schedule a closing date. Our “commitment letter” is a conditional approval that says “This conditional approval is not binding unless the lender receives the borrower’s acceptance within 10 days. The lender’s obligation to lend expires if the loan doesn’t close within 60 days, unless the lender sends a written extension.” It also says the approval expires mid July which is not 60 days from the issuance date. I asked our LO why it says the approval is not binding, and what we can do to formally accept the approval so that it becomes binding on their part to lend, provided that we don’t make any changes on our end or financial profile. The LO is taking very long to answer. There is a short gap between our mortgage commitment deadline coming up soon, and closing as of now (closing this Friday or next) but there is a risk of closing delay by the seller. I want to ensure we carry no risk of having our mortgage approval revoked by the lender due to no fault of our own (if they’re going out of business or our loan program is discontinued or some other reasons) during this gap because our deposit is rather high. Our attorney has been doing third for 35 years and said he has never seen this hypothetical situation happen. But are we crazy for requesting that the conditional approval have the accurate language? submitted by /u/jeweledbeanie [link] [comments]

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