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Am I contractually obligated with my lender if docs have been signed but the loan process has not been completed.

by marie213@msn.com from Palm Coast, Florida. Sep 24th 2014 Reply


Mona Hulteen (mhulteen)
#22 ranked lender in New Jersey - 49 contributions

You can back out. However, you need to be able to transfer everything asap so that you meet closing deadlines.

Sep 27th 2014
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Dan Paladin (dpaladin)
#2 ranked lender in California - 417 contributions

On a purchase transaction or a non-owner transaction and if you have signed loan docs yes....on a refinance transaction for an owner-occupied loan you have 3 days to cancel. Please check with your local real estate attorney to confirm though I believe that to be true in your state.

Sep 24th 2014
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

No.. in fact current laws state you can back out of a deal up to the day of funding, but this only is in reference to the financing.. if your purchasing a home, you could be sued by the seller if you don't close before the close of escrow date, and most lenders will not accept an appraisal done by a different lender so if the plan is to use a different lender, then it could end up costing you more.. Realistically, if you had any doubts about your loan, you should have canceled the deal long before loan doc's.. the amount of resources and man power to get your loan to where doc's have been produced and already signed is quite substantial.. so canceling after all this would be unethical. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Sep 24th 2014
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Paul Sheridan (paul@njlendingsource.com)
#20 ranked lender in New Jersey - 10 contributions

No you are not. Infact on a refi you can still back out within3 days AFTER signing Closing docs. If you are unhappy with your current loan proposal we will beat ANY offer you get to win your business. Call me direct anytime for free rate and payment scenarios @ 732-359-6002

Sep 25th 2014
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

No, you can back out up until the day you close, and 3 days after for a refinance. If you change lenders keep in mind that you are starting over. Unless it is a FHA or VA loan you will need a new appraisal for the new lender and rates may have changed.

Sep 25th 2014
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,446 contributions

Until you close, you are not obligated to anything. There may be some fees you need to pay (like an appraisal), but that is it. Once you close, that is a different story. On a purchase. The deal is done. On a refinance, you have 3-business days to back out. Lending in WI, MN, and SD - www.MNHomesAndLoans.com

Sep 25th 2014
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