This form is a sample of an agreement to extend the time of a loan commitment in order to consummate a purchase of real property which will be security for the loan. In effect the loan applicant is asking for an extension of the date of closing set forth in the loan commitment or application.
The District of Columbia Extension of Loan Closing Date refers to a legal provision that allows individuals or entities involved in loan transactions in the District of Columbia to extend the agreed-upon closing date of the loan contract. This extension provides additional time for borrowers, lenders, and other parties to fulfill certain requirements or address any unforeseen circumstances that may have arisen prior to the original closing date. In the District of Columbia, there are primarily two types of extensions of loan closing dates: 1. Individual Borrower Extension: This type of extension is requested by an individual borrower who may require more time to gather necessary documentation, secure additional funds, or address any other personal circumstances that may delay the loan closing. This extension ensures that borrowers have ample time to fulfill all the necessary obligations without facing any penalties or complications. 2. Lender-Requested Extension: Occasionally, lenders may discover certain issues during the loan processing phase that could potentially impact the closing date. They may need more time to rectify these issues, conduct additional verifications, or overcome any delays caused by external factors. In such cases, lenders can request an extension of the loan closing date to ensure that all requirements are met before finalizing the loan agreement. The District of Columbia Extension of Loan Closing Date provisions offer flexibility and protection to both borrowers and lenders, promoting a fair and transparent loan process. It helps borrowers avoid unnecessary rush or stress in meeting all the requirements within a short period. Simultaneously, lenders can ensure a thorough evaluation of loan applications, reducing the chances of potential risks or errors. By availing these extensions, borrowers and lenders can work together to overcome any challenges that may arise during the loan approval process, leading to a smooth and successful closing. It is important to note that the terms and conditions surrounding the extension of loan closing dates may vary depending on the specific loan agreement, lending institution, and individual circumstances.
