Purchase Agreement Details That Can Delay Mortgage Approval
A complete signed purchase agreement, every addendum, and prompt notice of later changes help the lender, appraiser, and closing team work from the same transaction terms.
Mortgage approval is based on the transaction the signed purchase agreement actually creates. If the lender receives an incomplete purchase agreement or learns about a material change late, underwriting and closing figures may have to be rebuilt.
Send the complete signed purchase agreement
The lender should receive the signed purchase agreement and every addendum, counteroffer, disclosure, and rider that forms part of the agreement. The appraiser also needs the complete purchase agreement and all addenda to analyze the sale price, concessions, personal property, and other transaction terms.
Missing signatures, blank financing terms, conflicting closing dates, or an omitted addendum can stop the file until the final agreement is clear.
Report amendments as soon as they are signed
A later price reduction, seller credit, repair escrow, closing-date extension, or change in who pays a cost must reach the lender immediately. These changes may require updated disclosures, a revised appraisal review, new underwriting approval, or corrected closing figures.
Do not wait for the title company to relay the change. Sending the signed amendment directly to the loan officer reduces the chance that one part of the transaction is working from outdated terms.
Terms that need extra attention
Seller credits, rate buydowns, or payment of the buyer's costs.
Furniture, vehicles, large decorating allowances, or other non-realty items.
Repairs, escrow holdbacks, occupancy agreements, or seller rent-backs.
Subordinate financing, gifts of equity, or assistance tied to the seller or another interested party.
Scenario
A $285,000 purchase agreement initially gives the buyer a $6,000 seller credit. After inspection, the parties sign an amendment reducing the price to $280,000 and increasing the credit to $9,000. If the lender still has the original purchase agreement, the loan estimate, appraisal review, and cash-to-close calculation are all based on the wrong numbers.
When the signed amendment is sent immediately, the lender can test the $9,000 credit against the program limit and eligible costs, update the $280,000 purchase price, and revise the closing figures before final approval. If it arrives on closing day, the corrected terms may require redisclosure or another underwriting review and delay signing.
Related lessons
What Happens After Your Offer Is Accepted?
How to Extend a Closing Date When Mortgage Processing Takes Longer
Related FAQs and articles
FAQ: What do you need before a real pre-approval review can start?
Article: How Financing Strategy Can Make Your Offer More Competitive
Send purchase agreement changes before they become closing problems
Forward the complete signed purchase agreement and every amendment as soon as it is executed. DRG Mortgage can identify terms that need underwriting, appraisal, or disclosure review while there is still time to address them.
Review Purchase Agreement Terms
Sources
Fannie Mae Selling Guide: Disclosure of Information to Appraisers