This is a standard contractual clause that may show up in your sales contract to purchase real estate. The clause acts to enforce dates and times identified in the contract regardless of outside issues that may arise.
Beyond the contract the basic meaning still applies to not only your purchase contract but your application and approval for financing. Although time lines are not specifically identified and there is not a binding contract for your mortgage application and approval you still need to work in a timely manner. The mortgage broker is responsible for coordinating several parts of the mortgage process that can take time. For example the title and the appraisal may take a week or more between the time it is ordered and the time the reports are returned for approval. If you are not available to meet with the appraiser that only extends the time and puts you at risk. You may run over your lock period for the rate. You may not get approved in time for your settlement on a purchase or your funds or documents may be late.
Real estate contracts typically have a clause that states how many days buyers have to make application once the contract is binding. If buyers fail to do so in a timely manner they risk the seller terminating the contract.
The biggest thing that slows a loan down is the borrower. The broker can only be as motivated as you are. If you want a loan to move quickly then you must act quickly.
