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Can I back out of a refinance before closing?

sunnyca2009's picture
sunnyca2009 | Joined: August 4, 2009 07:15 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

You will probably loose the money what you have piad till. But check the terms of the agreement

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 02:11 | Post subject:

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Lisa,

You can back out of the refinance before closing. But once you close on the loan, you become liable for the loan and you cannot back out of it until you pay it off. In case you back out before closing, you may have to lose the earnest money. But depending on what type of agreement you had with them, you can get a partial or a full refund of the earnest money. If you have paid for the appraisal etc., then you are going to lose that money as well.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 02:11 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i don't get this reference to earnest money. if it is a refinance, it is property that you already own anyway. if you back out of your refinance transaction prior to closing, you will not be compensated for any money you've paid out to the lender or others on their behalf.

on the other hand, if you go ahead and close, you will have a 3-day right of rescission. if you exercise that right, and cancel the loan during that 3 day period, it is required that your lender return all funds to you that you've paid out.

if you're going to cancel, i'd suggest you do it after closing and during your rescission period.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 02:11 | Post subject:

smithsara302's picture
smithsara302 | Joined: June 12, 2009 11:36 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Check with the lender before going for further decesion also go through agreement carefully.

Good Luck

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

dang

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I don't have the agreement - the loan officer has been less than helpful - so I'm not even sure how to check! By 'earnest money' I meant the $200 I had to put down with my application, though that may have been an application fee... I did already have the appraisal. Can another bank use the same appraisal, or if I don't close now, will I have to pay for another one?
Thanks for the quick reply,
Lisa

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eric1's picture
eric1 | Joined: January 4, 2009 03:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Tenoirmystess

You can expect to lose your $200. After all, the broker has been working on your behalf and needs to have SOMETHING for his/her efforts. In addition, if the home was appraised already, then you would owe that cost as well.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

can I decided to not go through with an application for refinance, but they took a deposit for an apprasier to come out. They haven't set an appointment to come out. Can I get that 300.00 back.

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi william,

You can very well cancel your refinance application now but I don't think you would be able to get back the money that you paid for appraisal. If the appraisal has not taken place, then you may request the lender to give back the monies.

Take care.

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