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Amend to Extend the Loan Objection Deadline

Hi All,

Our house has been under contract for a little over a month now - scheduled to close in about 2 weeks.  Inspection and appraisal both went well.  The loan objection deadline was yesterday and at 10:00 p.m. last night we got a call from our realtor saying the Buyer's had to extend to Sept. 20th for their Loan Objection Deadline.  We asked why and our agent said it was because they are going with a different lender.  

Should we be concerned?

Thanks!
  • September 13 2013 - US
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Answers (5)

Profile picture for user93757775
Thank you for all the responses.  I will update this discussion for future readers once I know the end result.  Keeping my fingers crossed we can still close this deal.

Thanks!
  • September 14 2013
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When investing in a house, mortgage costs can make a huge difference in budget. The buyers could have been shopping around or received a last minute deal from another lender. They could have also, lost there approval, typically lenders will require another credit check after 30 days of lag time or right before the closing.  Your Real Estate Agent should be able to obtain more details as to why the contract was not "able" to close on time.  

The attorneys should be in communication with each other and as an agent I would request a Commitment letter or "Pre-Approval Letter" from the new bank of choice. This will confirm that they are still able.

The Pre-Approval letter should have been received with the contract and updated if more then 30 days had passed without closing.

I would not extend the deadline until I receive confirmation.

Best Regards,
Josh Garcia


  • September 13 2013
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There is a reason why, and hopefully your agent is able to get a bit more
information as to why- This has happen in the past  with buyers, switching lenders,  but never close to closing, the discovery happened earlier and the buyer was able to switch successfully - but I do understand your concern being so close to closing.

Good luck to you!

  • September 13 2013
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I have to agree with Tim and Rachel. Buyers typically don't just switch lenders after they have already had the appraisal done and are two weeks from closing.
  • September 13 2013
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Profile picture for Outer Banks N C
Maybe not be concerned, but it sure begs the question of WHY. If lender #1 turned them down then I would be concerned.
  • September 13 2013
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