getting out of a binder

We have not gone to contract yet, but signed a binder / written offer.

We have the engineer coming tomorrow.

Assuming the engineer's report is okay - can we still get out of the binder if we so choose? (If we decided to do that, we'd do it asap...)

Re: getting out of a binder

yes. you can cancel any time. even if you go into contract, however, you will lose your downpayment if you are in contract and you cancel. Try to put down the least amount possible for this reason. you never know.

Re: getting out of a binder

Thank you so much. That is what I assumed, but I wasn't really sure.

Thankfully, We have NOT put any money down.

We would DEFINITELY decide before we go to contract.

It's just that if we have the tax issue I'm afraid we might have (requiring us to pay 10 months of taxes at closing), we may have to postpone buying a house... We could still do it, but we'd be cash poor... and that's not a good feeling to me at all.

I'm just going to it all works out and our closing costs will not be that high.

My other fear is that our preapproval is worthless. I mean, I read several articles about how the preapproval / good faith estimates are basically worthless. The GFE I'm working on estimating myself -- but I don't want to go to contract, hand over $20,000 and then find out all of the sudden our mortgage rate is sky hight... but I also am not sure I want to pay the application fee to find out before we go to contract and lose that, too... though better to lose that than the 20 grand.

I hope the mortgage guy gets back to me soon about the taxes....

Message edited 3/30/2007 9:53:20 AM.

Re: getting out of a binder

Our mortgage guy was great and told us what we could afford! The sellers will try to get you to put down the most that you can but try to put down $10,000 or less. We had to pay nine months at closing because of when we closed. Closing costs can cost anywhere from $10,000 to $20,000 depending on the price of the house, how much you are borrowing and the taxes in the area. Ours where approx. $16,000. Good luck!

Re: getting out of a binder

Did the homeowner pay the whole year of taxes up front? Usually you haveto pay them back what they already paid..

You can withdraw your offer at any time before going to contract.

Re: getting out of a binder

If you cant get a mortgage or the mortgage is not what you thought it would be you can have your mortgage broker write the sellers a denial letter and you will get back your deposit that you put on contract. We did. We put money down on contract wanted to get out of the deal beause our co op wasnt sellinh- our mtg broker wrote the letter and the atty released the money no quetions asked. We were friends with our mtg broker though...