Lender change after appraisal

Microsoft fang2
Jul 7 10 Comments

My closing got extended and mortgage rate lock got expired. Current lender is charging me very high fees to extend lock. So I have decided to shop around with other lenders and check rate, closing costs etc. my existing lender paid appraisal fee on my behalf. Is it possible to walk away from them? Would I be subject to any contract breach?

comments

Want to comment? LOG IN or SIGN UP
TOP 10 Comments
  • Why are you asking Blind?
    Jul 7 0
  • Capital One
    v3g3table

    Capital One

    PRE
    OSIsoft
    v3g3tablemore
    This is mostly a math question. Assuming rates are now higher? By the way your lender did not pay any fees on your behalf ... they will just roll them into your loan. And an appraisal is a condition of any loan so expect to have to pay it again if you switch. They are betting you can’t find a better loan in the amount of time you have left so that you can close on your house and therefore want you to pay.
    Jul 7 2
    • Microsoft fang2
      OP
      As I mentioned, I did not pay for appraisal . My broker did
      Jul 7
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      Depending on the state and lender they may be entitled to recoup this if you walk away.

      That’s certainly the case with BofA in IN. Can’t say for CA.
      Jul 7
  • E*Trade / Finance cbEV72
    You should be fine because the papers signed conditional on funding secured usually. The worst should be the deal is off and you need a new contract. You signed papers in good faith
    Jul 7 1
    • Microsoft fang2
      OP
      Thanks
      Jul 7
  • You may have to pay for the mortgage and tax of the seller for the extra days you’ve added. Are you sure it’s worth it to restart the process?
    Jul 8 0
  • Uber / Eng itsdara
    Rates are lower now. Your lender can just start another loan. And you can extend the contract. You can find another lender but time is of the essence
    Jul 7 0
  • New / Other
    DuQvV7y

    New Other

    BIO
    Did stuff. Hustled hard. Retired
    DuQvV7ymore
    It depends entirely on what you signed.

    There was someone weeks ago saying never to have a contingency. *This is why that was awful advice*

    Hopefully OP is smart enough to have that as a contingency so it becomes a math question and not a legal question
    Jul 7 0
  • Man go talk to a real estate lawyer. You need one at closing anyways.
    Jul 7 0