Legal Question in Banking Law in Pennsylvania

I am currently in the process of getting a mortgage. I have signed the Intent to Proceed but have not closed yet. I am very unhappy with the current lender, am I allowed to switch lenders during the application process before closing?


Asked on 10/30/14, 9:20 am

1 Answer from Attorneys

ANDREA G. TILLIS Law Offices of Andrea G. Tillis

Your Agreement of Sale usually specifies by which date you must make an application for a mortgage loan. It will usually include words to the effect that "....Buyer shall submit an application for a mortgage loan with a bank or lending institution by _________ ..." And a date will be indicated in the blank space, so you will have to have an application submitted by that date.

However, many Agreements of Sale state that the Agreement of Sale is contingent on "Buyer securing a commitment for a mortgage loan by ___________ ". So, if you can apply for a mortgage loan and have them issue a commitment by the date indicated on the Agreement of Sale, then nothing is stopping you from applying for a mortgage loan with another lending institution.

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Answered on 10/31/14, 5:08 am


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