Do you think this wording on a real estate financing agreement is binding?
We were just going over the papers before signing our loan agreement for the purchase of a newly built home. The lender is affiliated with the builder, though they’re separate companies (Shea Homes and Shea Mortgage). We will receive a $ 5,000 incentive if we finance through this lender.
One paper they require us to sign says the following:
“I have applied for a mortgage loan with Shea Mortgage. I acknowledge that I have no intention of refinancing or paying off this loan within 180 days of closing.”
We were told that this is because the loan will be sold ASAP, and the investors require that the loan will not be paid off within that time, in order to get at least a minimum amount of interest. But here’s the question:
Since it says that “I have NO INTENTION” of refinancing or paying it off in that timeframe, and not “I AGREE THAT I WILL NOT…”
Does that mean that it is not binding? I mean, we may have no such intention when we sign the paper, but may change our mind if our circumstances change within that time (for example, if our current house sells). Would they have legal recourse against us if we do pay it off before their 6 month requirement?
Thanks for your advice!
(I realize it is not binding, just a suggestion on your part)