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What does IF THE MORTGAGE LOAN HAS NOT BEEN ARRANGED mean? Does this mean I need mortgage commitment

I am trying to work with my mortgage lender and determining when my mortgage commitment is needed from them. In the contract, there is a line that states "IF THE MORTGAGE LOAN HAS NOT BEEN ARRANGED, OR IF THE BUYER HAS NOTIFIED SELLER OF BUYER'S DECISION TO COMPLETE THE TRANSACTION WITHOUT OPENING A MORTGAGE COMMITMENT, ON OR BEFORE 5/22/13, THEN EITHER BUYER OR SELLER MAY VOID THIS AGREEMENT BY WRITTEN NOTICE TO THE OTHER PARTY.".

Does this mean I need commitment by 5/22/13? I ask because the closing dates is not until a month later, so getting a rate lock, etc. seems very premature. 
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April 23 2013 - Wayne
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Answers (6)

Yes you need to have a mortgage commitment by that date and it is really not too early to start the discussion of locking in a rate.
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April 25 2013
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"Rate locks are typically for 60 days"
-------
Which planet is this on, it's definitely not Earth. 
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April 25 2013
Rate locks are typically for 60 days - The Seller needs to know if you are moving forward with the purchase so they can make their plans - It takes at least 30 days to make moving plans and pack etc- so it is good to remember that the Seller needs to make committments as well. So, YES, that means you need to have a committment by May 22, 2103. If you do not have that committment by then and you do not tell the Seller by then you are obligated to go ahead with the purchase regardless of whether you have mortgage committment.

Hope this helps.
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April 25 2013
As a mortgage lender, We provide a prequalification for our realtor's just to show that "to date" we have looked at your documents, credit etc and do not see a material or major issue with financing- (as long as nothing changes).  I do these all day long and its good for you to make sure there is not something that shows up "out of the blue" and potentially ruin your financing.  You are not making a final commitment and neither is the mortgage company but for the agents peace of mind and yours they are always a good idea.
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April 23 2013
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I appreciate your answer, but I am having a fundamental difference of wording which is extremely important. Do I need to have a mortgage commitment, or have just "started" the process? That's the point I am trying to figure out. 
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April 23 2013
Yes you need to apply for a mortgage with a lender by that date, The lender needs to complete the application, do an appraisal, maybe other inspections and other paperwork. 30 days may seem long but depending on the type of loan or lender sometimes they need 45 days so you do need to get started or you may not close in time.
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April 23 2013
 
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