Over the past few years we have encountered a number of out of state lenders and even local lenders who are unfamiliar with the standard Purchase and Sale Agreement used by all Realtors in the S.W. Idaho area. There is a particular section of this standard form that dictates what items constitute a valid preapproval letter. We realize that many times the lender receives a fax of the agreement that is very difficult to read - so as a courtesy to our clients and yours we have included that verbiage to aid you in drafting a valid loan commitment letter.
Thanks for all you do!
-Darrin
REAL ESTATE PURCHASE AND SALE AGREEMENT AND RECEIPT FOR EARNEST MONEY
Page 1, Paragraph C, lines 40-45
BUYER __ has applied __ shall apply for such loan within ______business day(s) of SELLER’S acceptance. Within _____ business days of final acceptance of all parties, BUYER agrees to furnish SELLER with a written loan commitment showing lender approval of credit report, income verification, debt ratios and subject only to satisfactory appraisal and final lender underwriting. If such written commitment is not received by SELLER within the strict time allotted, SELLER may at their option cancel this agreement by notifying BUYER in writing of such cancellation. If an appraisal is required by lender, the property must appraise at not less than purchase price or BUYER'S Earnest Money may be returned at BUYER'S request.