A Financing Contingency is written in to your Offer to Purchase. Generally, you have 30 to 45 days to satisfy your Financing Contingency. This is done with a Loan Commitment Letter.
A Loan Commitment Letter is very important, because it basically says that everything is 100% approved in underwriting, we have received our final approval, your closing date is set, and all we are doing is waiting for the closing day to sign all the closing paperwork and for you to move into your new house. It’s very important that we never issue this letter before the final approval because if something were to happen where the loan was not to go through, you’d be forced to buy the house in cash.
As soon as we have your final approval, we’re going to send you a copy of your Loan Commitment Letter for your review. Just sign and date and send it back to us. We will then issue it to your Realtor, so they can send it over to the seller’s side.