Re: Mortgage Commitment Gone Bad - Posted by BTL
Posted by BTL on June 12, 2006 at 09:40:45:
The words obtain a formal mortgage commitment are worth about two cents. And preapproved is only important to me when the offer is being presented.
Teach your agent to change the contract to read buyer shall obtain the necessary financing within 30 days or seller shall be entitled to keep $_____ of the deposit and terminate this contract. (the cost of effectively taking my property off the market)
Yes some buyers object but a serious buyer should have been preapproved already, based on a completed honest application. The only thing that should blow the financing is the property.
And if a mortgage broker told me someone was preapproved and then couldn’t get financing for them, that mortgage broker would be on my list of people not to be involved with in the future, I expect them to deliver, oh,I know there is an occassion glitch but pro’s come through.