How Do I Know If I Have a Firm Commitment When I Sell My Home?
When I buy a home to re-sell it sometimes I get a little bit attached to it. I can tell you after buying and selling dozens and dozens of homes over nearly 40 years there is one thing I've learned for sure, and it sounds just like the old baseball saying, "It's not over 'til it's over." Remember that one?
Well, I know that when I sell my home it can be a long process, just like playing a baseball game. Think about two teams playing baseball as I relate this process to you. Let's call the two sides Team Seller and Team Buyer. Both sides have a whole group of players and of course both sides desire to win. The game of selling a home begins when both teams agree on a sales price and the game ends when the title to the house is transferred to the new homeowner.
Nobody knows how long this game will take when I sell my home, because in that way it's just like baseball! Although Team Seller and Team Buyer are represented by real estate brokers, members of each team who negotiate price and terms, once the sales agreement is on paper sometimes a false sense of security can set in. It's not real because both teams want the game to be over and both teams are trying to win, but both teams forget that another team gets involved in the game at this point, and that would be Team Lender.
At this point the game changes completely whenever I sell my home. No baseball game has ever been played by three teams at once, right? But, the truth is that every real estate sale involving a bank or other lender really has three teams. And you'd better believe that when Team Lender steps onto the field it takes complete control because it is also in the game to win. The reality is this: if Team Lender won't profit by loaning money on this particular mortgage then the game is over.
At that point both Team Seller and Team Buyer lose out. When Team Lender doesn't win, nobody wins. This story is an example of the fact that nobody in a real estate transaction really knows if there's a firm commitment from the mortgage lender until a written commitment is received by the borrower, the buyer. The letter from the lender to the buyer declares a firm commitment to loan a certain dollar amount at a specific interest rate on or before calendar date. When that letter or fax arrives, then there's a firm commitment, and not a day sooner. That's the day I know I'll be able to sell my house!
About the Author
"Sell my Home" is what Leo Kingston hears a lot. He helps owners sell their houses for cash with no closing costs. http://www.18002sellhomes.com
Tell others about
this page:
Comments? Questions? Email Here