Loan process for newly build single family property.

2 Replies

Hello BP, 

I am in the process of getting a commitment letter from a Lender to comply with contractual terms. I am shopping around for the rate for a closing to take place sometimes in Oct/Nov but to get the builder know I am qualified, I am getting a commitment letter from their Lender. The lender sent me loan disclosure forms and want me to sign. What I want to know is that by signing these disclosure forms, am I telling the lender that I will only use them regardless of their rate or do I still have option to go with a different lender after signing the forms should I get a better deal without any concerns.

I am fairly new to the loan process so want to confirm if disclosure forms are not going to tie me down to one lender only and what should I look for in those forms to be more aware?  

Any help is greatly appreciated. Thank you. 

Originally posted by @Umer Shafiq :

Hello BP, 

I am in the process of getting a commitment letter from a Lender to comply with contractual terms. I am shopping around for the rate for a closing to take place sometimes in Oct/Nov but to get the builder know I am qualified, I am getting a commitment letter from their Lender. The lender sent me loan disclosure forms and want me to sign. What I want to know is that by signing these disclosure forms, am I telling the lender that I will only use them regardless of their rate or do I still have option to go with a different lender after signing the forms should I get a better deal without any concerns.

I am fairly new to the loan process so want to confirm if disclosure forms are not going to tie me down to one lender only and what should I look for in those forms to be more aware?  

Any help is greatly appreciated. Thank you. 

 It's not 2007 any more, you can back out at any point, including at the closing table, and owe nothing to the lender. Might be on the hook for an appraisal fee, if an appraisal is ordered... you will generally know b/c you will be hit up for a credit card.