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

Asked by Manfredo, Herndon, VA Mon Aug 17, 2009

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?

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Abe Mills, Agent, Greenville, SC
Mon Aug 17, 2009
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!
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Cherrie Cata…, , Chicago, IL
Mon Aug 17, 2009
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.
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