Posted on: 15th Mar, 2008 12:39 pm
i'm trying to refinance to cash out. our mortgae boker wants us to sign the same paper we will at closing now, then he said that it as to have a three day hold ( something like a resining period, then go to processing, then do something else, and then actually close a week and half after sign the first set of paper. and we won't get our check for cash out for a day or to after closing. we have done this before, but it didn't work this way, we signed a mortgage application, a lock in and then just signed papers at closing and recieved our check then, and also were told that we had 3 days to resined, but this guy is not saying this. does this sound strange
that sounds strange.
the first step should be application, then you sign preliminary disclosures or RESPA docs. It's turned into the processor who sends it to the Underwriter. Once the U/W approves it..then they send it to closing.
You close it with your attorney/title company/notary, then you have to wait 3days for the 'right of rescission'.
the first step should be application, then you sign preliminary disclosures or RESPA docs. It's turned into the processor who sends it to the Underwriter. Once the U/W approves it..then they send it to closing.
You close it with your attorney/title company/notary, then you have to wait 3days for the 'right of rescission'.
I think that three days is put in there for your protection in case you change your mind right? So it is for your protection right?
that's correct. it's called a 'cooling period'.
it was placed there by Federal Law
it was placed there by Federal Law
Makes sense, since you would want the right to change you mind there, what if you signed everything and then decided not to go through with it, I think this is a nice protection law to have in place and three days is not a real long period to wait.
once you close you will have 2 sheets for each borrower.
each sheet basically states the same thing .....sign here to rescind, and fax/mail back
each sheet basically states the same thing .....sign here to rescind, and fax/mail back