Can a mortgage company to add contingencies to a loan commitment is signed?

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I signed a loan commitment from the bank with an additive of emergency – the bank may wish to add the schedule, after the commitment documents are signed?

  1. Reply
    A W
    February 8, 2011 at 4:06 pm

    It depends….what are the contingencies? Do you mean things like “you can get the loan but to get the loan you need to pay off X credit card”? If so, yes they can.

  2. Reply
    Paul in San Diego
    February 8, 2011 at 4:09 pm

    Yes. Banks have standard practices and, if they accidentally left it out of yours, they can come back later and add an addendum.

    Sellers can do that, too. I put an offer on a condo that was accepted. And, the next day, my agent informed me that the selling agent had an addendum stating that, while they would pay for a termite inspection, they would not do any of the required type 1 repairs. These are repairs to the exterior of the building caused by wood destroying pests or dryrot. Since this is a condo, that’s the responsibility of the HOA, anyway. So, I agreed to the addendum, because it was just something that was standard for a condo sale that they overlooked on the sales contract.

    At this point, you have the option of either signing the addendum or going with a different lender. But, another lender might put the addendum stipulations in the original contract anyway, depending on what they are.

  3. Reply
    David Beasley
    February 8, 2011 at 4:55 pm

    “Loan committment” is not what it sounds. The only “committment” will be the NOTE and DEED. These are the “docs” when the lender has agreed to lend you the $ on certain terms.

    If the lender is changing the terms (more $ down, lots of documentation, letters of explanation, etc) you don’t fit that loan program’s guidelines.

    There are lots of loan programs, and lenders. They each have their own rules, so that is why it is valuable to use a mortgage broker… who can shop your scenario with lots of lenders to find the right fit.

    It might be time to move on to another lender… there are lots of houses out there too! Maybe you can get a better deal elsewhere.

    Best of luck!

  4. Reply
    Lisa L
    February 8, 2011 at 5:31 pm

    Sometimes conditions make conditions. Maybe they said they needed a bank statement. You gave them the bank statement & there were NSF’s on there or not enough money to close. That would precipitate another condition.

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