Verbal commitment to lender for home mortgage, locked interest rates.

Manfredo
Manfredo
Home Buyer
Herndon, VA

I made a verbal commitment to a lender two days back on home mortgage loan but have not signed any paper work yet. Can I back out now without any financial or legal penalty?

Mon Aug 17 2009, 18:00 - Financing in 20170 - 2 answers
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Abraham Mills
Abraham Mills
Agent
Greenville, SC

Manfredo,
Yes you can a verbal contract is un-enforceable. If you were to go test drive a car, you do not own it until you sign those papers!

Good Luck!

Mon Aug 17 2009, 20:39
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Cherrie Catama
Cherrie Catama
Mortgage Broker
or Lender
Chicago, IL
FIRST ANSWER

Yes! Technically you are not obligated to any loan. Nothing is finalized until the loan is closed and funded. Just be upfront with the lender and tell them you are cancelling your application and decided to go another route. Good luck with your loan.

Mon Aug 17 2009, 20:33
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