What is the rescission period?
The rescission period is the waiting period of 3 business days between signing loan papers and the final closing of the loan. It is required by federal law on almost all financing of property that is owner occupied at the time the loan papers are signed. It is not required if you are purchasing your primary residence and also using it for collateral on the loan (a typical purchase).
The rescission period is a waiting period of three days (excluding Sundays and legal holidays) between signing your loan papers and closing your loan. This period allows you to reconsider and perhaps void the transaction. Federal law requires it for all owner-occupied refinances. How quickly can I close my loan? The time needed to close your loan depends on a variety of factors, including the time needed to obtain required documentation and when you can sign your loan documents. Many loans close within 10 days of application and most loans close within 7 days of receiving a final approval.
