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How Will I Know For Sure If My Buyers Will Get Their Loan?

Posted by on Jun. 13, 2010 at 11:08 AM
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 How will I know for sure if the buyers for my house are apporved for their Loan? Will I be getting a Letter of some sort from their Lender? Is there a certain procedure for this type of thing? This is the first time I have ever sold a house, so I need some guidance on this please!

by on Jun. 13, 2010 at 11:08 AM
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tenacity
by Group Admin on Jun. 14, 2010 at 8:54 AM

 I mentioned this in an earlier post to you.

To be sure and get a "loan commitment" letter. 

Not just a "pre-approval letter".

That will state they for sure can obtain their loan.  Get it as soon as possible.

Now, just a note here...  IMHO, the commitment letter assures you they can get the loan. So, at minimum, if they try to back out for a loan reason, then you may have grounds to keep the earnest deposit.

Keep in mind, if they perform inspections and you are using the standard real estate contract for KS, then they have the 10 days for an inspection period to which they can back out for an inspection reason and they WILL get their earnest money back.

Note: the contract can define any number of days for inspections but if none are defined, the standard contract applies and it is 10 days.

Remember, do not confuse earnest deposit monies for down payment.

The EMD is the money they submitted with the original offer to show good faith.  There are specific laws governing the handling of earnest money in MO & KS.

There are no ifs ands or buts where earnest money is concerned. There is a "standard" cancelation form that dictates the resolution.

 

Mary67
by Member on Jun. 14, 2010 at 10:05 AM

 Who do I get this letter from? From the Buyers Lender, or the Buyers themselves?

RealtorHolly
by Group Admin on Jun. 14, 2010 at 11:07 AM

The letter will be written by the buyers lender.  You can either call the lender directly or have the buyers deliver it to you.  

Mary67
by Member on Jun. 14, 2010 at 12:43 PM

 I will contact my Buyers to let them know I need a Loan Commitment Letter from their Lender ASAP. Thanks!

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