Posted on: 17th Oct, 2010 03:48 am
i went to a broker for refinance. he asked me to sign a few document, one of them is acknowledgement, which states "if i should cancel the loan process, ...., i may be liable for and agrees to pay a cancellation fee, not to exceed 1% of the loan amount. "
i am wondering what is this cancellation fee ? and is it legal to ask for this fee ? btw, i am paying the appraisal fee.
i am wondering what is this cancellation fee ? and is it legal to ask for this fee ? btw, i am paying the appraisal fee.
In certain cases, some brokers can charge cancellation fees. If you want to avoid this fee, you should speak to other local brokers and check out if they can offer you a loan without charging the cancellation fees.
Unfortunately, I already signed it. and I want to back out of it 2 weeks after locking in the rate. The GFE from the bank is received (no signatures), Appraisal is done (I paid for it). credit check done. And the question is does he/she have ground to charge me the commission he/she would have gotten if it goes through. I know it is a lose-lose situation, but let's say, we do not like each other.
Hi Guest,
I don't think you'll be liable for paying the broker's commission. The lender will pay for the broker's commission.
Thanks,
Jerry
I don't think you'll be liable for paying the broker's commission. The lender will pay for the broker's commission.
Thanks,
Jerry