Failure to Close

[jtwallace]

Florida.
After going through all the required steps to secure a new construction loan, including the payment of a $200 application fee, I have decided that I don't want the loan. There are several reasons that I could list such as the HUD-1 figures -including the APR- being higher than the good faith estimate, but they may be beside the point. The question is what costs might I be liable for? Probably I won't get my application fee back, but can the bank force me to pay fees such as surveys, appraisals, assessments, etc.? Or can I just walk away? What do banks usually do in such circumstances? Thanks for your advice.

 

[pojo2]

Have you signed the loan papers yet?

Probably I won't get my application fee back, but can the bank force me to pay fees such as surveys, appraisals, assessments, etc.?

Just curious but why do you think you should not have to pay these expenses since you wasted everyones time, if they have been paid out by the bank that is?

IF the loan papers have been signed, enjoy the new home!

 

[jtwallace]

Closing reply

Thanks for your reply. The closing will be by mail and has not yet occurred. I no longer want the loan since I feel I was "lowballed" by the bank. They have upped the APR twice already while keeping the initial rate the same. This must mean they are adding fees. All will come out when I get the HUD-1, so I want to be ready knowing all my options.