The mortgage commitment is something I believe we don’t talk about enough in the real estate industry—both on the buyer and seller side of the transaction.
The mortgage commitment is very important to both parties because it’s the buyer’s last chance to back out of the deal.
If you’re a buyer, it’s always important to discuss the whole home buying process with your Realtor, and part of that process is the offer-to-purchase phase, which contains the mortgage contingency date. The mortgage contingency date is usually set three weeks after signing the purchase and sale agreement. As I said, this is the last opportunity to back out of the deal and get your deposit back.
Between then, you’ll have to deal with the appraisal and gathering all necessary paperwork the bank requires from you. Once you get the mortgage contingency taken care of, you’ll close on the home roughly 10 to 14 days later.
If you’re a seller, you want the mortgage contingency to expire as soon as possible, because the buyer can back out of the deal up until the mortgage contingency date if the bank says they don’t qualify for a mortgage. This can be very stressful if you have your moving arrangements already scheduled, so make sure you talk to your Realtor about this.
As always, if you have any questions about this or any other real estate topics, don’t hesitate to reach out to me. I’d love to help you.