Financing in Lititz>Question Details

Charlie, Home Buyer in Lititz, PA

If refinance papers are printed at one bank, but not signed and a better rate is found elsewhere, are you obligated to the first bank?

Asked by Charlie, Lititz, PA Wed Aug 11, 2010

I applied for a refinance with my current mortgage holder. After being stalled for a month and a half and having to push the loan officer to lock in my rate that I thought was locked in when I first went in to apply, the papers where finally printed. I picked them up, but I didn't sign or return them yet. Meanwhile, I found an even better rate at another bank. Am I legally obligated to the first bank, or can I apply with the new bank and disreguard the first refinance papers that I didn't sign or return?

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No you are not obligated. I recently refinaced a past customer that was ofered 5.0% by there current lender. They called me and I did it a 4.5%. The only downside is you will probably have to pay for another appraisal. Rates are now down to 4.25%.

Good Luck
0 votes Thank Flag Link Thu Aug 12, 2010

even after settlement you have 3 days in which to rescind the contract.
You are not obligated.

0 votes Thank Flag Link Thu Aug 12, 2010
Hi Charlie,

The simple answer is NO. If this is a refinance of an owner occupied residence you will be given a 3 day right to cancel the transaction. At anytime you may cancel the deal by simply writing a letter to a manager, they must cancel your transaction. Any costs you have already paid may be forfeited by doing so.

Hope this helps!!!
0 votes Thank Flag Link Wed Aug 11, 2010
Hi Charlie...

There is a bunch to ask. Was the loan properly disclosed at all? If so you would have a legally binding rate to your Broker. With that said NO you are not obligated to a refi through anyone. You may be out your appraisal fee.

It sounds like the company was unprofessional. In CA were doing refinances in 20 days or less.

Best of luck

Web Reference:
0 votes Thank Flag Link Wed Aug 11, 2010
Hi Charlie,

You aren't obligated till you sign on the dotted line but be careful, I have seen many in your situation. They are ready to sign and quoted another rate by another lender who does not know the whole picture or circumstances of the loan then when it is time to deliver it doesn't happen. Remember rates can fluctuate daily so what is here today can be gone tomorrow.

Good Luck!

Chris Blasic
Realty World & Associates
0 votes Thank Flag Link Wed Aug 11, 2010
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