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Do you have to sign a mortgage if you don't like the terms?

You waited to find the perfect home, and you already had a preapproval letter for a mortgage. You thought everything was going to go smoothly, but when you read the fine print of the mortgage, you started to feel uneasy. There were terms in it that you didn't quite understand, and you weren't pleased with changes to some terms you expected when speaking to someone previously.

You feel like you have no other option but to sign the mortgage, but can you walk away? The fact is that you never have to sign anything that you aren't satisfied with. If the terms aren't good, then it's your right to walk away and refuse to sign a mortgage.

The only catch is that if you have a contract with the seller, you could end up running out of time to complete the sale. Additionally, you might be subjected to legal action if you break the terms of your contract with the seller.

That's why it's a good idea to have your attorney review any seller/buyer contract you enter into before you agree. If something happens to your potential mortgage or you change your mind about the sale, you want to be able to exit the sale without any penalties. If you choose not to take the loan you are offered initially, you might still be able to obtain a different one or extend the length of time you have to close the sale. Remember, whatever you do, the seller might still have a right to claim against you, so be certain of the terms of your agreement first.

Source: Consumer Financial Protection Bureau, "At the mortgage loan closing, do I have to sign if I don't like the terms?," accessed Nov. 03, 2017

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