|
Mortgage CommitmentThe mortgage commitment is approval for the Buyer’s mortgage. Commitment will state all the conditions of the loan amount, term, interest rate, points, type of mortgage and the length of time the commitment is valid. The Buyer and Buyer’s agent must examine the details before forwarding to the Seller. If not all conditions of Paragraph 8(A) are met or the date of settlement is beyond the date valid then the contract may be terminated by the Seller. In addition, there may not be any other conditions for the Buyer listed on the commitment not previously disclosed. A sale of an existing home not previously disclosed is grounds for Seller terminating the contract. Should there be a dispute with any of the details or conditions on the commitment, the Buyer must resolve any problems prior to the commitment date stated in the contract and deliver the commitment by the date stated on line 113. Seller OptionsA copy of the written commitment must be received by the Seller by the Mortgage Commitment Date or the Seller has the option to terminate the Agreement in writing. The Buyer is still obligated to seek financing, but the Seller has the right to terminate the Agreement at any time until a written commitment is received. Seller may terminate the Agreement if the commitment - “Contains any condition not specified in this Agreement … that is not satisfied and/or removed in writing by the mortgage lender within ___(7) DAYS after the commitment date … other than those conditions that are customarily satisfied at or near settlement (obtaining insurance, confirming employment).” Agreement Termination is Costly for BuyerIf Seller terminates the Agreement, all deposit monies will be returned to Buyer and the Agreement will be void. Also, Buyer is responsible for any costs incurred by Buyer for:
|
