Question about LQI and closing agreement with lender.

Your lender will never sign anything other than a Mortgage Commitment Letter. THAT'S the document that commits them to close your loan. Your Realtor is a Bully and they don't understand the mortgage process, even though they may tell you otherwise.

The seller may have a good reason for a specific date, such as a pending foreclosure date.Real Estate agency rules require FULL disclosure, so the agent who represents you should be able to find out the true reason. The lender is correct in not making a guarantee as to the closing date. Sometimes, it is the realtor who makes up the need for a fast closing, so his(her) BMW does not get repossessed! This can happen.You deserve to know the truth, in writing.

Something sounds odd... Your lender will not sign a letter guaranteeing a closing date, since he cannot control issues that could or might arise that would delay or deny a mortgage loan. If your realtor has been doing business in the last 4 to 6 years, they should know that.. bottom line is this.. your realtor works for YOU!!.. If you tell the realtor that you don't want it, then that should be end of story.. if your realtor persists, call their broker... but I think Dave and Barb might be right.. sounds like they are bullying you so they can keep their BMW from getting repossessed.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Your Realtor is likely looking for a Commitment letter from the lender. Many realtors ask for this in the purchase agreement, based on some arbitrary date they select and demand the lender honor. It really doesn't work that way. While in theory, the idea is they want a "commitment" from the lender by a specific day basically saying the loan is all done and ready to close. All loans, even once "clear-to-close" are not ever really clear until you are sitting at the closing table signing documents. Most realtors have little understanding of all the rules and things we lenders do behind the scenes. Even most Loan Officers don't know this is done by underwriting, but your Lender will do LQI (Loan Quality Initiative) on a file right before closing. Usually within 72-hours of closing. They will re-pull credit to look for any new inquires or dramatic credit changes and do a verbal re-verification of employment. I've had plenty of deals fall apart a day or two before closing when we find out the borrower has lost their job, bought a bunch of new items on credit that gets them denied because of a now higher debt-to-income ratio, or even a recent one, where a brand new $7,000 judgement showed up on credit. The biggest problem is that the commitment letter the realtor demands, is assumed by them to be a guarantee, and it is not... because it is not a guarantee, it really is a meaningless document they are asking the lender to provide. In MN and WI, visit www.JoeMetzler.com

I agree with the other answers. Any lender who would sign such a letter would be opening themselves up to any number of issues. You should actually have more faith in your lender because he/she won't sign it. Lenders are in the business of lending money. No one is going to kill a deal for no reason at the last minute, they want the transaction to close just as much as everyone else involved. William is right, the Realtor works for you. Tell the Realtor you have faith in your lender and that you do not require this form to be signed (because you'll never get it from a decent lender). If they continue to push back, ask to speak with their broker and that will likely be the end of the conversation. Best of luck getting your situation resolved.

Your lender is correct. There is no way to guarantee that you will close. They will never sign such a letter. Your realtor is completely inappropriate.

Nobody can guarantee a closing date. Your realtor's policy is outdated and incongruent with today's business practices. Not to mention, a world of legal issues that could arise with attempting to commit to something like that. Nobody can see the future and nobody can guarantee a closing date. I've seen contracts that require final approval by a certain date and if those conditions aren't met, penalties arise but, that's about it.

Illinois is an attorney state so take advantage of legal representation as an attorney can over ride any clause within a purchase agreement.