Forgotten Your Password?

Need to Register?

Question Icon

How late can I pull out of a loan? It's suppose to close in 3 days.

by agolomsh726 from Bruington, Virginia. May 25th 2021 Reply


Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,300 contributions

Purchase or Refinance? And Why? Is the loan for a primary residence or other type of property. Essentially, you just notify the lender that you wish to cancel and its over. HOWEVER, if the loan is related to a purchase transaction, you could end up breaching the contract and that could have penalties, or you could end up owing damages to the seller for the breach. If it is a refinance, you could be responsible to the lender for any out-of-pocket expenses incurred during the loan process. Some states allow a lender to contract with a borrower. If your state allows this and there are penalties for you canceling after approval, you could also be responsible for those penalties. If you did not enter into such an agreement most, if not all states allow you to cancel the loan before the loan papers are signed without penalty. On a refinance, if the property is not your primary residence, then once you sign the loan documents, it is too late to cancel. On a primary residence refinance, there is a three 'business day' waiting period called a rescission period, that allows you to cancel without penalty. Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.Licensed in AZ, CA, GA, IL, OR & WA... In fact, NEXA is licensed in all states except MA and NY so give us a call. ~ www.ApplyYes.com 480-889-9000.

May 25th 2021
0
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,409 contributions

Simple. Just don't sign. If it is a refinance, no issues. You may need to pay for the appraisal if you haven't already. If it is a purchase, there may be ramifications from the sellers side for breach of contract. Talk to your agent. I lend in WI MN IA SD ND. Find me at Wi-MortgageBroker.com - Cambria Mortgage, NMLS 274132

May 27th 2021
0
0
Subscribe to our news feed.