How to Terminate a Mortgage Application
The excitement that surrounds buying a new home can sometimes make borrowers jump the gun and go with the first mortgage lender or broker they come across instead of shopping around to find the mortgage type, loan terms and upfront costs that best meet their needs. Other times, borrowers realize that they are simply not ready to purchase a home, and decide to put the entire process on hold. Fortunately, mortgage applications are not binding contracts, You can cancel one at anytime, for any reason, with very little hassle.
Call your loan officer or broker and state that you want to cancel your pending mortgage application.Step 2
Give him your name and other personal identification information, such as your Social Security number, date of birth and application number, as applicable.Step 3
Provide a reason for the cancellation. If your reason for the cancellation is temporary, and you plan on reapplying in the near future, tell the lender so.Step 4
Request the return of any documents, such as pay stubs, tax forms or other financial paperwork.Step 5
Request refunds of the fees you paid during the application process. These might include credit check, appraisal, rate lock-in and application processing fees, but many lenders do not provide refunds once the funds have been used for their intended purposes.
Lauren Treadwell studied finance at Western Governors University and is an associate of the National Association of Personal Financial Advisors. Treadwell provides content to a number of prominent organizations, including Wise Bread, FindLaw and Discover Financial. As a high school student, she offered financial literacy lessons to fellow students.