Backing out of the Loan
Backing out of the Loan
I want to keep the good interest rate I have on a prospective loan. If I sign all of the loan documents now, and then before closing, I decide to back out of the home purchase, do I still owe the entire mortgage amount? Or do I just lose my loan/doc fees only?
3 Answers
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1
Unless you complete the closing, the deal won't be finalized. In such a situation, you won't owe anything to the lender. You may lose the loan/doc fees.
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I agree with Adonis. It is true that you will lose the loan/doc fees. You won't be liable for the mortgage unless the closing is complete.
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You can back out of a deal before its closing. You will owe the entire mortgage amount only if the deal gets closed. Before that you can back out any time.