pay stubs<\/u><\/a>, tax returns, bank statements, and income verification.\u00a0<\/p>Based on these documents, the lender will be able to anticipate the maximum loan amount that the borrower will be able to qualify for to purchase the said property using firm commitment underwriting.<\/p>
The lender will then provide a firm commitment letter to the borrower that acts as a promise to lend the amount to the borrower for the property purchase.\u00a0<\/p>
The borrower can start the house hunt post receiving a firm commitment from the lender according to his\/her needs.\u00a0<\/p>
The firm commitment gives assurance to the seller stating that the buyer has secured finance for the purchase transaction.<\/p>
The firm loan commitment comes with expiration. As the lender has already worked on your file and qualified you basis your income, debts, and credit score; if you fail to fund within the time mentioned in your firm commitment letter, the lender may charge you for cancellation.<\/p>
If the commitment is canceled and the borrower still wants the loan, he\/she might have to re-apply for the loan.\u00a0<\/p>
However, the terms of the new loan may be different from what was originally offered to the borrower in the first place.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t