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What do I do if the terms of my mortgage loan at closing are not what I was promised beforehand?

Don't sign the closing documents if the loan is not what you were promised. 

You don’t have to sign anything at closing unless you are satisfied with the terms. The lender owes you an explanation of why the terms have changed.  Don’t sign any papers until you are satisfied with the terms as written in the documents. There are always other options.

If you are refinancing, then you can renegotiate with the lender, or cancel the closing and look for a new lender.

If you are using the mortgage to buy a new home, you still have options. You can ask the lender why you are not being given the loan you were promised and insist upon the promised terms. You can also negotiate with the seller for more time to find a new lender. However, your purchase contract with the seller may limit the amount of time you have to purchase the home. There may also be legal or financial consequences if you break the promises you made in the contract with the seller.

Walking away from a purchase loan closing isn't easy, but it may be preferable to agreeing to a loan that is more expensive than what you were promised. Explore your options. Review your sales contract and consult with an attorney or trusted advisor.  You might ask the seller for more time so that you can negotiate with the lender or find a new lender. Never sign any papers until you’re satisfied that you understand what has changed and why, and that you can afford the new loan terms.

If you need help finding an attorney, you can get a referral from your county bar association or you can view this list of legal aid services in your state.

If you have a problem with your mortgage closing process, you should discuss the issue or matter with your lender. If you’re having issues with your mortgage, you can also submit a complaint  to the CFPB online or by calling (855) 411-CFPB (2372). We’ll forward your complaint to the company and work to get you a response. You may also wish to get your own attorney to take a look at your issue or matter.