Mortgage Application

Mortgage application 8(C) reads: ”Within ____ days (7 if not specified) from the Execution Date of this Agreement, Buyer will make a completed, written ... application … for the mortgage terms and to the mortgage lender identified in Mortgage Amount.” Buyer is obligated to submit the application within the specified time period so check your calendar for any conflicts that would interfere and change the number of days.

In addition, the application must be written, completed and submitted by the end of the time period and, must be according to the terms stated in Mortgage Amount. The terms include the amount, term, type, lender, interest rate, loan-to-value ratio and fees. Failure to make application according to the agreed-to terms may be a breach of the Agreement, especially if financing is denied based on the actual application where it would have been approved based on the stated terms.

Other Conditions

Buyer must pay the lender for a credit report or appraisal when requested by the lender. Also, Broker for the Buyer is authorized to communicate with the lender in order to assist in the mortgage process. This wording is included in (C) and may have to be pointed out to the lender since they are prohibited from revealing financial information about customers without consent.

Buyer can make additional application to any other lenders as long as an application to the original lender is also made. The Agreement does not prohibit the Buyer from accepting a loan from another lender, but if that financing agreement terminates the Buyer may be in default. Buyer should notify the Seller of any changes to the mortgage terms in writing.

Return From Mortgage Application To Part 2 – Mortgage Contingency