Posted on: 01st Apr, 2010 02:13 pm
if I signed the closing paperwork on monday and on Tuesday when I went to get my keys, I was told that my loan was not approved because they did another employment verification and found out that I had a loss of employment. I am again employed.
Thank you
Carlton
Thank you
Carlton
Hi detroiter,
As far as I know, a borrower is allowed a rescission period of 3 business days in order to cancel the mortgage agreement. This allows the borrower to get some time to think if he got the right kind of deal that he was looking for. The lender does not fund the loan until the rescission period if over.
The lender can also cancel the mortgage agreement during this time. But they do not generally do so unless the borrower has committed fraud. The situation you described is unlikely to happen. The lender allows you to sign on the closing documents only if after they have thoroughly verified your employment. Thus, it is unlikely that your lender would cancel your mortgage agreement once you have closed on the loan.
As far as I know, a borrower is allowed a rescission period of 3 business days in order to cancel the mortgage agreement. This allows the borrower to get some time to think if he got the right kind of deal that he was looking for. The lender does not fund the loan until the rescission period if over.
The lender can also cancel the mortgage agreement during this time. But they do not generally do so unless the borrower has committed fraud. The situation you described is unlikely to happen. The lender allows you to sign on the closing documents only if after they have thoroughly verified your employment. Thus, it is unlikely that your lender would cancel your mortgage agreement once you have closed on the loan.