What are the legal and or financial implications of signing an offer to hold the rate and then breaking the deal?budric wrote: ↑ What are the legal and or financial implications of signing an offer to hold the rate and then breaking the deal?
Can the lender pull out, last minute? Maybe the rates go up and they'd like to make more money. Or say, the client changes jobs, and now there's a probation period as opposed to a long steady work history. Any penalties to the lender for backing out?
How about the client? Say, as a client in 120 days I find a better deal.
With most brokerages there would be no penalties at all . There are some brokerages that make you sign a document that state if you walk away
from the deal there are financial penalties and these are legally binding.
lenders will not increase the rate once you have signed a commitment
switching jobs prior to close is a material change to the original submission and can drastically impact your approval
There would not be a penalty to the lender - they approved you based on current job / salary if for example you switched jobs and the salary is lower
causing you to no longer qualify they will cancel the deal.
Better rates for sure you can switch happens all the time
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