You do not have to sign anything unless you are satisfied with the terms. You should never sign anything if you do not understand the terms or if you cannot pay back the loan.

If you are borrowing money to buy a home, you likely have a contract with the seller. That contract may limit the amount of time you have to close the sale. That contract may also subject you to legal action if you break the promises you made in it.

Review your contract or seek the advice of an attorney to determine what options you have if you decide to walk away from a particular loan offer. You may be able to secure a new loan or extend the period in which you must close the sale. However, if you cannot do so, you may lose the deposit you paid to the seller when you entered into an agreement to buy their home. The seller may have other legal rights against you.

TIP: If you have a contract with the seller, review the “mortgage clause” in your sales contract. This will tell you whether your deposit will be refunded if the sale is cancelled, if you are unable to get a loan.

TIP: If you are in the process of refinancing your existing mortgage, you do not have any contractual obligation to sign the documents.