It happens that on somewhat rare occasions, buyers get cold feet. There can be any variety of reasons why someone would have a change of heart on a home. One reason might very well be that the person was encouraged to buy a home before really being ready. When buying a home, one can’t readily show the home store the receipt and request a refund. Once those closing papers are signed and the loan is funded, the house is yours.
Once word gets around that you’re thinking of buying a home, it’s not surprising that referrals for real estate agents and mortgage companies begin to arrive. Some of these referrals can be very persuasive. It’s not hard to imagine someone signing a sales contract did so primarily at the urging of others. Yes, they were exploring the possibility of buying but were essentially ‘talked into’ making a purchase when they weren’t really sure they were ready.
Maybe there were some life changes that needed a course correction. Maybe interest rates suddenly shot through the roof and they could no longer afford the home they really want. In this instance, the lender will help you change your mind by letting you know that you can no longer afford what you could afford just a few weeks ago. This doesn’t happen very often but it has happened before which also tells you it’s possible it can happen again. When such events, and others, seemingly appear out of nowhere, can you just walk away?
The answer is yes, but with a few caveats. The first to note that any funds you’ve given to your lender will likely be forfeited. Did you pay for an appraisal upfront but now have decided you want to cool things down and rethink your mission? If an appraisal hasn’t been performed, then it’s possible your lender will refund your money. But if the appraisal has been completed, those funds go to the appraiser who performed the work. The same can be said for application fees. As the name implies, it’s a fee that gets your loan application in motion.
If you do decide to walk away, understand that you’re not obligated to move forward with the loan. You can quit anytime you want. It may not always seem like it but you are indeed the one in control. If you decide you want to wait, you can walk away at any time you choose.
